Coinbase Joins Tokenized Stock Race Ahead Of Incoming SEC Exemption

All eyes on the SEC for clarity

While US cryptocurrency service providers have found success with tokenized stocks in foreign jurisdictions, the product is not yet available to US consumers. Strict securities regulations and settlement rules are the main stumbling blocks standing in the way of a mainstream launch in the US.

However, the US SEC is tipped to issue exemption guidelines in the coming weeks that will allow tokenized stocks in the US. The exemption will allow companies to experiment with distributed ledger technology (DLT) business models without the need to comply with the SEC’s strict disclosure and investor-protection rules.

However, SEC Chair Paul Atkins noted that the exemptions will be limited, casting doubt on the scale of the tokenized stock offerings in the US. Meanwhile, traditional finance players warn that tokenized stock trading will expose investors to new risks depending on the scale of the exemptions.

Source:: Coinbase Joins Tokenized Stock Race Ahead Of Incoming SEC Exemption