Thomas Daniels
Cryptocurrency exchange Coinbase is actively pursuing U.S. Securities and Exchange Commission (SEC) approval to introduce “tokenized equities” — a move that, if sanctioned, would position the platform as a direct competitor to established stock-trading services.
A Reuters report on Tuesday revealed Coinbase’s Chief Legal Officer, Paul Grewal, confirmed that obtaining SEC backing for tokenized stock trading is a “huge priority.” The initiative would enable U.S. users to trade tokenized versions of conventional equities — a service currently absent from the domestic market, though available to international clients through partnerships with select digital-asset firms. Notably, Kraken announced a tokenized U.S. stock trading rollout in May.
The company’s regulatory timing may benefit from the current political climate. Since the Trump administration’s return to power in January, U.S. crypto firms have experienced a more favorable legal landscape. Earlier in the year, the SEC dropped a 2023 enforcement case targeting Coinbase. If approved, the SEC would likely issue a “no-action letter,” indicating no intention to pursue enforcement.
Paul Grewal has yet to disclose whether a formal SEC application is already under review. Meanwhile, Coinbase is making strides globally: it anticipates securing authorization under the European Union’s Markets in Crypto-Assets (MiCA) framework.
However, challenges persist. The company recently disclosed that cybercriminals bribed some non-U.S. Coinbase support agents to access user data, sparking a wave of phishing attempts.
Coinbase’s stock (COIN) traded at $252.20 at the time of reporting — down approximately 3.6% over the previous 24 hours. The firm made history in May by becoming the first U.S. cryptocurrency company admitted to the S&P 500 index.
