SEC Greenlights Tokenized Stocks as Coinbase Sees 4.5% Boost

Coinbase (COIN) stock surged 4.5% in afternoon trading following the Securities and Exchange Commission's (SEC) announcement of a five-year Innovation Exemption for tokenized stocks.

The exemption allows eligible venues and liquidity providers to trade tokenized representations of U.S. stocks without standard exchange registration, pending public comments on permanent regulatory policies.

Coinbase already offers tokenized equities offshore but not yet in the U.S., where it plans to let eligible retail investors request IPO allocations through its app via Coinbase Capital Markets.

The shares are trading at $203.28, up 5% from the previous close, after a similar exemption was announced three days ago for tokenized equity trading.