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Coinbase Pursues SEC Approval to Launch Tokenized Equities

Coinbase plans a formal SEC filing to enable digital stock tokens at a time when regulators consider an innovation exemption for blockchain-based securities

Overview

  • Coinbase’s chief legal officer, Paul Grewal, confirmed the company is preparing to submit a formal request for tokenized equities and called the initiative a “huge priority.”
  • If approved, tokenized equities would allow shares to trade as digital tokens on blockchain networks with faster settlement, lower costs and around-the-clock trading.
  • To offer tokenized stocks in the U.S., Coinbase must obtain either a no-action letter or exemptive relief since it is not registered as a traditional broker-dealer.
  • SEC Chair Paul Atkins has signaled support for tailored exemptions and the agency is evaluating a regulatory sandbox for crypto exchanges to test new digital-asset offerings.
  • Rival platforms like Kraken have already piloted tokenized stock products overseas, setting the stage for heightened competition with brokerages such as Robinhood and Charles Schwab.