Coinbase Seeks SEC Approval for Tokenized Equities
Coinbase, a leading cryptocurrency exchange, is in discussions with the U.S. Securities and Exchange Commission (SEC) to offer tokenized equities. This initiative could position Coinbase as a competitor to traditional stock trading platforms like Robinhood. According to Paul Grewal, Coinbase’s chief legal officer, the project is a ‘huge priority’ for the company.
Current State of Tokenized Equities in the U.S.
Tokenized equities, including stocks, are not currently available for trading in the United States. However, U.S.-based digital asset companies have explored similar offerings for non-residents through partnerships. For instance, Kraken announced plans in May to launch tokenized U.S. stock trading.
Regulatory Environment and Future Outlook
The regulatory landscape for crypto companies appears to be improving. Earlier this year, the SEC dropped an enforcement action against Coinbase that was filed in 2023. Approval for Coinbase’s tokenized equities plan could come in the form of a ‘no-action letter,’ signaling the SEC’s stance on enforcement actions.
Coinbase’s Global Expansion and Challenges
Coinbase is also progressing in the European Union, where it expects to secure a license under the Markets in Crypto-Assets (MiCA) regulations. Despite these advancements, the exchange faced a security breach where cybercriminals bribed support agents for user data, leading to phishing attempts. Coinbase’s inclusion in the S&P 500 index in May marks a significant milestone for a U.S. crypto firm.
