Coinbase is reviving its long-held ambition to bring tokenized securities to the U.S. market. This intention has surged amid a more crypto-friendly environment under the Trump administration, especially following a series of personnel changes at the Securities and Exchange Commission (SEC).
For a long time, Coinbase has been interested in crypto securities and previously aimed to release a tokenized version of its COIN stock during its IPO in 2020. However, this plan was rejected by the SEC.
A spokesperson for the exchange expressed a desire for a crypto-native version of COIN shares as it became the first major crypto company to go public.
In its 2020 S-1 filing, Coinbase stated it would expand support for other crypto assets, including tokenized securities:
“We will invest in infrastructure and regulatory clarity to pave the way for the digitization of traditional financial assets, allowing them to be represented as crypto assets.”
Additionally, the exchange is developing a legal framework for blockchain securities to help developers and users comply with relevant regulations. The company is also implementing a digital asset monitoring program to comprehensively evaluate crypto projects.
Policy Landscape Shift
Under former Chairman Gary Gensler, the SEC accused Coinbase of operating as an unlicensed exchange, broker, and clearing agency. However, the landscape has shifted. Evidence of this is the decision to drop multiple lawsuits targeting the industry, including legal disputes against Coinbase. Nonetheless, the exchange is still requesting the SEC to “itemize” the costs of the crypto lawsuits.
Under the new leadership of Acting SEC Chairman Mark Uyeda, the commission established a dedicated crypto task force at the end of January. This could signal a more open regulatory environment, facilitating Coinbase’s efforts to restart its tokenized securities plans.
Coinbase CFO Alesia Haas remarked:
“I believe that U.S. regulators are seeking product innovation and looking towards the future. Now, we can restart discussions with the SEC’s task force to bring crypto securities to the U.S. market.”
Coinbase CEO Brian Armstrong will be among the few participants at the first-ever crypto summit at the White House on March 7. Previously, during a financial earnings report, he emphasized the potential of tokenized securities, particularly their ability to trade 24/7:
“I believe that tokenized securities will provide many benefits to users, especially by allowing transactions to occur at any time, unrestricted by traditional market hours.”