The Crypto Exchange Chief Legal Officer told the Reuters that the coinbase is demanding a green light from US Securities and Exchange Commission to offer “token equity” to its customers.
If provided, steps will be allowed coincidence To effectively introduce stock trading through Blockchain technologyKeeping it in direct competition with retail brokerage such as Robinhood and Charles Schwab can open a new business section for the coinbase.
The concept is a “huge priority”, “said Paul Grewal, Chief Legal Officer of the Coinbase.
Token equity is a process in which shares of a company are converted into a digital token, such as how Cryptocurrency Are doing business. Instead of keeping the securities straight, investors hold tokens that represent the ownership of securities.
Supporters have stated that tokens can reduce equity trading costs, enable rapid disposal, and facilitate the surrounding trading.
Critics have said that there are many intervals that need to be addressed before token equity, usually trading can be done. The World Economic Forum, in a report last month, pointed to a clear global standard deficiency as two major challenges for adequate secondary-market liquidity, as well as two major challenges for adoption.
An SEC representative did not immediately respond to the request for comment.
Currently, tokens equity are not available for trade in the United States, but many firm are experimenting with concept. Rivids Crypto Exchange Crackon said last month stated that it was launching the US equity tokens, called the Xstox, which will be available in select markets outside the United States.
To offer tokens equity in the United States, the coinbase will need to give either a “no action letter” or SEC, in which the securities regulator will pledge not to pledge an enforcement action if the coinbase proceeds.
Typically, companies offering trading in securities should be registered as broker-dealers. The SEC sued the company in 2023 during the administration of former President Joe Biden, alleging that it was working as one without registering with the agency. Under the administration of President Donald Trump, the SEC left the case this year.
The Coinbase acquired a broker-dealer in 2018, which gives it a license to offer uniform services, but it is not affiliated.
In response to a company request of a company like Coinbase, a no-action letter will be issued by SEC employees, saying that SEC would not object to a certain offer and if a firm would not recommend an enforcement action to move forward with that offer.
Grewal did not say whether the Coinbase had already presented an official request to the SEC or when a possible product could be launched.
“With a no-action letter, with a token equity or a platform issuer who wants to offer secondary business in the equity, there may be some confidence, some comfort, that the SEC has adopted its approach why this product is compliant,” Grawal said.
“The belief is that there is a shortage of so far, and I think a lot of institutional adoption has been held in reality” Crypto and Blockchain Technology, said Grewal.
The step comes from the coinbase when Trump has demanded the US cryptocurrency policy over the campaign on the campaign mark. Trump has appointed industry -friendly regulators and hosted industry leaders in the White House. Cryptocurrency has responded favorably this year with Bitcoin reaching all -time high levels.
Under Trump, SEC has dropped cases against a litni of crypto companies, including coinbase, benns and cracks, and established a Crypto Task Force accused to prepare new rules for digital assets.
© Thomson Reuters 2025
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