Yigit Taha OZTURK 
As the financial world shifts further into the digital era, traditional stock trading may be facing a radical transformation. At the heart of this evolution is a major crypto exchange looking to reshape how investors access equities in the U.S.
Coinbase Targets Tokenized Equities for U.S. Market
Leading crypto exchange Coinbase is seeking approval from the U.S. Securities and Exchange Commission (SEC) to offer tokenized equities, according to chief legal officer Paul Grewal. If approved, this would allow Coinbase to offer stock trading using blockchain, placing it in direct competition with firms like Robinhood and Charles Schwab.
Tokenized equities are digital representations of company shares. Instead of owning physical stock, investors hold blockchain-based tokens representing ownership, with the potential to reduce costs, enable faster settlement, and allow 24/7 trading.
Regulatory Hurdles and Legal Uncertainty
Currently, tokenized equities are not legal for trade within the U.S. For Coinbase to move forward, it would need a “no action letter” or regulatory exemption from the SEC—effectively a statement that the agency will not pursue enforcement if the company proceeds.
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Coinbase is not registered as a broker-dealer, a requirement for traditional securities trading. In 2023, the SEC sued Coinbase for operating without registration, but the lawsuit was dropped in 2025 under President Trump’s administration, which has taken a more crypto-friendly stance.
Market Interest Growing Amid Regulatory Shifts
Competitor Kraken has already introduced xStocks, a tokenized equity product available in non-U.S. markets. The race is on to establish dominance in this emerging segment.
Grewal emphasized:
“What’s been missing is confidence. A no action letter signals that the SEC has acknowledged compliance, giving institutional players the assurance they need to participate.”
With shifting U.S. crypto policy, including SEC lawsuits being dropped and new regulatory initiatives launched under Trump, the momentum for tokenized equities appears to be building rapidly.
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