SEC Exemption Sets Stage for Tokenized Stocks Boom

The SEC's five-year exemption for tokenized U.S. stocks trading through automated market makers on public chains could benefit several companies, according to analysts at Goldman Sachs and Citizens.

Coinbase is one of those companies, as its existing tokenized-equity offering already carries many traits the SEC requires, including shareholder rights and dividends comparable with the underlying stock.

The company's CEO, Brian Armstrong, has said that voting rights are 'coming soon', which would give token holders rights matching those of underlying shareholders.

Roger Ver, an analyst at Citizens, noted that Coinbase could also benefit through its institutional custody business and infrastructure for other firms putting assets onchain.

Another company that may benefit is Robinhood, although its current offshore stock tokens do not fit the SEC innovation exemption. The issue became a flashpoint earlier this month when AMC Entertainment's CEO criticized Robinhood for offering AMC-linked stock tokens without the company's approval.