Coinbase Seeking SEC Approval For ‘Tokenized Equities’
Coinbase is seeking approval from the SEC to offer tokenized stock trading, a move aimed at competing with platforms like Robinhood. Chief legal officer Paul Grewal emphasized that this initiative is a top priority for the company. Currently, tokenized equities are not available for trading in the US, although some digital asset firms have partnered to provide similar services to non-residents. Kraken announced plans for tokenized US stock trading in May. A favorable regulatory environment has emerged since the Trump administration took office, with the SEC dropping a previous enforcement action against Coinbase. If approved, the SEC may issue a "no-action letter" regarding Coinbase's plans. Additionally, Coinbase is expected to secure a license under EU regulations and has faced scrutiny due to security breaches involving user data. Coinbase shares were trading at $252.20, down 3.6% in the last 24 hours, and the company became the first US crypto firm to join the S&P 500 index in May.
