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Coinbase Pursues SEC Approval for Tokenized Stock Trading in US Markets

Coinbase is actively engaging with the U.S. Securities and Exchange Commission to secure regulatory clearance for offering tokenized equities, aiming to enable fractional ownership and 24/7 trading of traditional stocks. This initiative represents a strategic expansion beyond cryptocurrencies into mainstream financial assets, positioning the exchange to compete directly with brokerage platforms like Robinhood.

Regulatory discussions center on a potential SEC ‘no-action letter’ that would provide legal clarity for tokenized securities, signaling a shift toward collaborative oversight frameworks. The move aligns with Coinbase’s parallel efforts to obtain licensing under the European Union’s Markets in Crypto-Assets (MiCA) regulation while addressing ongoing cybersecurity challenges across its operations.

Concurrently, Coinbase’s stock (COIN) continues to demonstrate volatility but achieved a landmark industry milestone through its inclusion in the S&P 500 index. This recognition underscores growing institutional acceptance of cryptocurrency infrastructure despite regulatory uncertainties surrounding novel financial products.

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