Cryptocurrency exchange Coinbase is reportedly looking for the green light from US financial regulators to offer tokenized stock trading to its users.
According to a Tuesday Reuters report, Coinbase’s chief legal officer, Paul Grewal, said the company was seeking Securities and Exchange Commission (SEC) approval to offer “tokenized equities,” potentially competing with other trading platforms like Robinhood. Grewal reportedly said the plan was a “huge priority” for Coinbase.
As of June, tokenized equities such as stocks are not available for trading in the US. However, US-based digital assets companies have been able to offer similar services to non-residents through partnerships. Crypto exchange Kraken announced a plan to launch tokenized US stock trading in May.
Since the Trump administration took over in January, Coinbase and other US crypto companies seem to be dealing with a friendlier political, legal, and regulatory environment. In February, the SEC dropped an enforcement action filed against Coinbase in 2023.
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Should the SEC approve Coinbase’s plan to offer tokenized equities, it would likely issue a “no-action letter” to suggest it had no intention of filing an enforcement action against the firm. Grewal reportedly did not indicate whether the exchange had already submitted a request to the SEC about the matter.
Coinbase in the news globally
The report came as Coinbase is expected to secure a license to operate in the European Union under its Markets in Crypto-Assets (MiCA) regulations. The exchange also faced extreme scrutiny after a group of cybercriminals reportedly bribed some of Coinbase’s support agents outside the US for access to user data, resulting in many phishing attempts.
Shares of Coinbase stock (COIN) were trading at $252.20 at the time of publication, having fallen roughly 3.6% in the last 24 hours. The company joined the S&P 500 index in May, making it the first US crypto firm to do so.
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