Coinbase Seeks SEC Approval for Tokenized Stocks Post Legal Clearance

Coinbase, a leading cryptocurrency exchange, has made a significant move towards integrating traditional finance with blockchain technology by seeking approval from the U.S. Securities and Exchange Commission (SEC) to list tokenized stocks. These security tokens are designed to function similarly to conventional equities but offer advantages such as faster settlements, greater transparency, and easier global access. This initiative comes after the SEC withdrew its complaint in February 2025, which had alleged that Coinbase was operating as an unregistered broker. With this legal hurdle cleared, Coinbase is now poised to develop regulated products that support a blockchain-based commercial banking system.

To demonstrate its commitment to compliance, Coinbase has submitted a new proposed set of rules to the SEC, known as the “Blockchain Token Securities Law Framework.” This framework aims to provide a structured approach to the regulation of security tokens, which could pave the way for broader adoption. According to crypto commentator MartyParty, the SEC had previously rejected efforts to introduce security tokens in 2019, but market conditions have since shifted, making regulators more open to structured discussions with major industry players. Coinbase is currently collaborating directly with the SEC’s crypto task force to tap into the potential of Security Token Offerings (STOs).

In parallel with its U.S. efforts, Coinbase is expanding its presence in Europe. The company is in the final stages of obtaining a MiCA license, which would allow it to offer services throughout the European Union. CEO Brian Armstrong has highlighted Luxembourg as a strategic base point within European company operations due to its regulatory consistency and innovation climate. Coinbase Business is another product the company is focusing on, targeting small and medium-sized companies. This offering provides stablecoin APIs and platform integration with partners like Shopify, enabling consumers to make seamless dollar-based payments and rewards systems. Armstrong observed that stablecoins were becoming one of the speediest and most affordable methods of moving money around the world.

Coinbase is also developing its payment strategy, which introduces an open protocol called X402. This scheme seeks to reintroduce the seldom-used web code 402 Payment Required, which enables micro-transactions of digital material and services without the need to set up user accounts or subscriptions. By positioning itself at the intersection of finance and blockchain, Coinbase is aiming to lead the transition into on-chain financial markets. The company’s legal clarity, regulatory engagement, and product innovation reflect a broader ambition to revolutionize the way equities are traded, offering a more efficient and transparent alternative to traditional methods. The SEC's decision on Coinbase's request will have far-reaching implications for the financial industry, potentially democratizing investing and making it easier for people around the world to participate in financial markets.