Coinbase aims to offer tokenized equities, pending SEC approval, to rival stock trading platforms.
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Coinbase Pursues SEC Approval for Tokenized Equities
Coinbase, a major player in the cryptocurrency exchange market, is reportedly seeking authorization from U.S. financial regulators to introduce tokenized stock trading to its platform.
According to a report from Reuters on Tuesday, Coinbase’s chief legal officer, Paul Grewal, confirmed the company’s efforts to gain approval from the Securities and Exchange Commission (SEC) for offering “tokenized equities.” This move could position Coinbase as a competitor to established stock trading platforms such as Robinhood. Grewal emphasized that this initiative is a top priority for Coinbase.
Currently, tokenized equities are not available for trading within the United States. However, digital asset firms based in the U.S. have managed to provide similar services to international clients through collaborations. In May, crypto exchange Kraken announced its intention to introduce tokenized U.S. stock trading for its international clientele.
Since the inauguration of the Trump administration, the political, legal, and regulatory landscape appears more favorable for Coinbase and other U.S. crypto enterprises. Earlier this year, the SEC withdrew a legal action against Coinbase, marking a positive turn for the exchange.
Potential SEC Approval and Global Presence
If the SEC approves Coinbase’s proposal for tokenized equities, it may issue a “no-action letter,” indicating no plans to pursue enforcement action against the company. Grewal did not disclose whether Coinbase has already submitted a formal request to the SEC.
Related: Coinbase Stock Surpasses $300 for the First Time Since Last Year
This development coincides with Coinbase’s efforts to secure a license under the Markets in Crypto-Assets (MiCA) regulations, which would allow it to operate within the European Union. Meanwhile, the company faced challenges after cybercriminals reportedly bribed some support agents outside the U.S. to access user data, leading to numerous phishing attacks.
At the time of this report, Coinbase’s stock (COIN) was trading at $252.20, experiencing a 3.6% decline over the past 24 hours. In a significant milestone, Coinbase joined the S&P 500 index in May, becoming the first U.S. crypto firm to achieve this distinction.
John is a renowned journalist and blockchain enthusiast with over 12 years of experience covering global financial trends and cryptocurrency markets. His sharp insights and ability to break down complex topics make him a cornerstone of finandcrypto.com. Known for his analytical skills, John is passionate about delivering content that empowers the crypto community.
