Coinbase seeks SEC approval for blockchain-based stock trading

Paul Grewal, Chief Legal Officer CoinbaseI said Reuters The company said it had wanted a future from the security and exchange committee for its new product, adding that tokenized stocks are a “big priority.”

When asked for additional comment, Coinbase checked the news with Fortune and pointed out the addition Social Media Posts From Grewal, he writes: “Exciting? Yes. Is it important? Absolutely. @secgov You need to allow the market to unlock tokenized securities. Tokenized debt, equities and investment funds provide tailored regulatory opportunities for securities offered and traded via digitally native methods. ”

grewal continued Includes link We ask for public opinion on how to regulate the crypto space for March responses to SEC inquiries from Coinbase. The 41-page response to the SEC focused, among other things, on advances in the discussion of tokenized stocks.

SEC did not respond immediately luckRequest a comment.

“Tokenized Stocks“What is “? Public company will be converted to Digital token It can be traded on the blockchain as if it were in the form of cryptocurrency. Blockchain transactions can take place anytime, not at regular Wall Street trading times, so customers can sell these “stakes” 24 hours a day.

Tokenized stocks have been Coinbase’s long-standing goal. The company attempted to bring digitalised stocks to the market in 2021, the same year as the original offering, by issuing a tokenized version of Coinbase’s Chief Financial Officer Alesia Haas. I said March of this year. She added that the plan was stopped by Biden-era SEC Chairman Gary Jensler, but under another presidential administration that embraced the crypto industry, Coinbase would renew its push for tokenized stocks.

“I believe that now US regulators are looking for product innovation and are trying to move forward,” she said. “I’m excited now that I might be able to work on those conversations with the SEC task force again.

Most companies offering securities trading must register as broker dealers, such as Morgan Stanley’s E* trade and fidelity. One way Coinbase gets approved to provide tokenized stocks from the SEC is to request “no action letter.” It is a way for the SEC to pledge that it will not oppose to tokenized securities or encourage enforcement action.

“Without action letters, any issuer of tokenized equity, or a platform that wants to offer secondary trading of these stocks, can have the confidence and a certain degree of comfort that the SEC is adopting its view on why this product is compliant,” says Grewal.

It is not clear whether Coinbase is attempting to obtain approval for tokenized securities through “no action letter” or other legal means.