This week, both Ethereum co-founder Vitalik Buterin and Coinbase’s legal chief stepped in to challenge the narrative.

Buterin argued that fears of Base acting as a custodial service are misplaced. Speaking on X, he explained that funds on Layer-2 networks remain secured by Ethereum itself, meaning operators cannot seize assets or prevent withdrawals.

For him, L2s are not centralized servers but extensions of Ethereum’s blockchain logic.

The comments come as Coinbase prepares to launch a governance token for Base, part of a broader effort to broaden community participation.

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At the same time, Buterin defended watchdog projects like L2beat, saying their role is to highlight practical safeguards, not to enforce ideological standards.

Coinbase CLO Paul Grewal also addressed one of the more persistent claims: that L2 sequencers should be regulated as exchanges.

Grewal rejected the idea, noting that sequencers simply order transactions, while trading functions are left to the decentralized apps built on top. Drawing a comparison, he asked whether Amazon AWS should be labeled an exchange just because many exchanges rely on its servers.

Together, Buterin’s technical defense and Coinbase’s legal stance reflect a coordinated push to reinforce confidence in Base at a time when questions around centralization and regulation remain front and center for Ethereum’s scaling solutions.

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