SEC Greenlight for Tokenized Stocks Sends Coinbase Shares Soaring

Coinbase shares rose by 4.5% in the afternoon session as crypto-related equities remained strong after a Securities and Exchange Commission order on tokenized stocks.

The SEC issued an Innovation Exemption that gives certain venues and liquidity providers a five-year path to trade tokenized representations of U.S. stocks, CNBC reported.

Coinbase has already offered tokenized equities offshore but not yet to U.S. customers, CNBC said.

The exemption is temporary and conditioned, not a launch of tokenized stocks on Coinbase in the U.S., according to an SEC spokesperson cited by CNBC.