Anushka Basu
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Coinbase wants SEC to greenlight tokenized stock trading originally appeared on TheStreet.
Coinbase (Nasdaq: COIN), the largest U.S. crypto exchange, is seeking regulatory authority from the Securities and Exchange Commission (SEC) to offer tokenized equities, a move that could position it to compete with Robinhood and Charles Schwab.
Coinbase's Chief Legal Officer, Paul Grewal, said in a Reuters interview that the concept is a "huge priority." Tokenized equities means taking a traditional share of a company and converting it into digital tokens that are traded on the blockchain.
Advocates argue that this reduces brokerage fees, speeds up settlements, and enables individuals to trade 24/7. But there are obstacles.
At present, tokenized equities cannot be traded in the United States. Competitor exchange Kraken has recently rolled out "xStocks" outside the U.S., which provides a snapshot of future trading possibilities for tokenized stocks worldwide.
To proceed in a U.S. environment, Coinbase would require a "no-action letter" or "exemptive relief" from the SEC, essentially guaranteeing that the company would not be subject to enforcement action if it pursued these types of transactions.
Grewal would not confirm whether Coinbase had submitted a formal request but said that institutions have been hesitant as a result of the lack of guidance presently.
Coinbase currently holds a broker-dealer license from a company it acquired in 2018, but that entity is no longer active.
The request comes against the backdrop of a broader shift in U.S. crypto policy under President Donald Trump, under whose tenure the SEC has abandoned its legal cases against key exchanges.
If granted, this could create a new and massive source of revenue for Coinbase, entirely redefining retail investing.
Coinbase's stock is trading at $250.02 at press time, down over 4.55% in the last 24 hours.
Coinbase wants SEC to greenlight tokenized stock trading first appeared on TheStreet on Jun 17, 2025
This story was originally reported by TheStreet on Jun 17, 2025, where it first appeared.
