Particle.news
Download on the App Store
5 ARTICLES
·
yesterday

Coinbase Seeks SEC Approval to Trade Tokenized Equities

It plans to convert public stocks into blockchain tokens pending a no-action letter under the SEC’s innovation exemption.

A smartphone with displayed Coinbase logo and representation of cryptocurrencies are placed on a keyboard in this illustration taken, June 8, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
Paul Grewal has served as Coinbase's chief legal officer since 2020.
Image

Overview

  • Coinbase’s chief legal officer, Paul Grewal, said the company is seeking SEC approval to trade tokenized equities representing public stocks on a blockchain.
  • To offer tokenized equities without broker-dealer status, Coinbase is pursuing a no-action letter or exemptive relief under the SEC’s forthcoming innovation exemption.
  • Proponents expect tokenized equities to lower trading costs, speed settlements and enable 24/7 share trading, positioning Coinbase against retail brokers like Robinhood and Charles Schwab.
  • The SEC under President Trump has dropped lawsuits against Coinbase and other crypto firms and is exploring new rules to foster digital asset innovation.
  • Critics warn that limited secondary-market liquidity and the lack of clear international standards remain major obstacles to widespread adoption.