Coinbase Eyes SEC Green Light to Launch Tokenized Stock Trading in the U.S.

Coinbase is making a bold push into a new frontier: bringing tokenized equities to the U.S. market. The largest American cryptocurrency exchange is seeking regulatory clarity from the Securities and Exchange Commission (SEC) to allow digital versions of traditional company shares—known as tokenized equities—to be traded on blockchain networks.

In a recent interview with Reuters, Coinbase Chief Legal Officer Paul Grewal confirmed that the initiative is “a huge priority” for the company. The idea is to take conventional equities and convert them into digital tokens, enabling round-the-clock trading with potentially lower fees and faster settlement.

But despite the potential, the road ahead is murky. U.S. regulations currently do not permit the trading of tokenized stocks, leaving major platforms like Coinbase in a holding pattern. To move forward, the company would need either an SEC “no-action” letter or “exemptive relief” — official assurances that the agency won't pursue enforcement actions for offering such services.

Grewal did not confirm whether Coinbase has filed a formal request but acknowledged that the lack of clear guidance has discouraged many institutional players from diving in.

Coinbase does have a broker-dealer license through a 2018 acquisition, though the entity tied to it is currently inactive. Reviving or leveraging that license may be part of the company’s longer-term strategy.

Internationally, rivals are already testing the waters. Kraken recently introduced "xStocks" to markets outside the U.S., hinting at what the future could look like if regulators come onboard.

The timing of Coinbase’s move is notable. Under President Donald Trump’s renewed administration, the SEC has eased its stance on several high-profile crypto enforcement cases, signaling a potential shift in regulatory tone that may favor innovation.

Should Coinbase receive the green light, tokenized equities could become a major new revenue stream—one that might reshape retail investing as we know it.