Coinbase Seeks SEC Approval for Tokenized Stock Trading
Coinbase Seeks SEC Approval for Tokenized Stock Trading
Coinbase Seeks SEC Approval for Tokenized Equities — Report
Coinbase is reportedly seeking approval from the U.S. Securities and Exchange Commission (SEC) to offer tokenized stock trading to its users — a move that could bring the crypto exchange into direct competition with platforms like Robinhood.
According to a Reuters report on June 11, Coinbase’s Chief Legal Officer Paul Grewal said offering tokenized equities is a “huge priority” for the company. These blockchain-based versions of traditional stocks are not currently available for trading in the U.S., but Coinbase is pushing to change that.
Tokenized Stock Trading in the U.S.
If approved, Coinbase’s offering would allow users to trade fractional shares of U.S. stocks on-chain. These would be represented as digital tokens and could be traded around the clock, with faster settlement and lower costs than traditional stock markets.
Currently, U.S.-based exchanges can offer tokenized stock trading only to users outside the U.S. Kraken, for example, announced plans to launch a similar service for international users in May 2025.
Regulatory Landscape Shifting
Since President Trump returned to office in January, U.S. crypto firms, including Coinbase, have seen what many describe as a more favorable regulatory climate. In February, the SEC dropped a previous enforcement action filed against Coinbase in 2023.
If the SEC supports Coinbase’s proposal, it may issue a no-action letter — a formal notice stating the agency does not intend to pursue enforcement, effectively allowing the product to move forward.
Grewal did not confirm whether Coinbase had already submitted a formal application.
Coinbase in Global Headlines
The report also comes as Coinbase prepares to secure a license under Europe’s new MiCA regulations, which would allow it to operate legally across the EU.
However, the company has also faced challenges. A recent breach saw cybercriminals reportedly bribe Coinbase support agents outside the U.S., leading to phishing attempts and heightened security concerns.
Despite the news, Coinbase’s stock (COIN) fell 3.6% over the last 24 hours, trading at $252.20 at the time of publication. Still, Coinbase achieved a major milestone in May by joining the S&P 500, becoming the first U.S.-based crypto firm to do so.
