Coinbase Surges 12% as SEC Exempts Tokenized US Stocks from Regulation

Coinbase's stock continued its upward trend on Friday, increasing by 12% to around $194. The surge in price comes after a new exemption from the U.S. Securities and Exchange Commission (SEC), which allows trading in tokenized U.S. stocks.

The SEC's 'Innovation Exemption' enables platforms to trade certain tokenized U.S. stocks on blockchains for five years, with the goal of enabling innovation while considering broader regulation for on-chain trading.

Coinbase analyst Robert Bamberger from Robert W. Baird noted that the exemption is a positive for Coinbase, particularly with the CLARITY Act delays. The Act failed to advance in the U.S. Senate on September 15 due to a lack of required votes.