The pathway toward US stock tokenization is becoming clearer. The latest innovation policy from the Securities and Exchange Commission (SEC) opens a five-year exemption window for trading US tokenized equities via automated market makers (AMMs) on public blockchains.
The SEC’s move has triggered new market assessments. Goldman Sachs and Citizens released reports positioning Coinbase, Robinhood, and Circle as potential early winners as US equities begin migrating onchain. However, this relief comes with strict ground rules.
The SEC’s innovation exemption rules require tokenized stocks to retain full shareholder rights, including dividend distributions and voting rights. This policy follows earlier announcements mandating that stock tokens guarantee voting rights. On the operator side, exchanges will also face trading volume caps and limits on the maximum number of shares offered to the public.
Coinbase’s Strong Position and Remaining Homework
Among the three companies, Coinbase is seen as having the most comprehensive supporting infrastructure. Goldman Sachs highlighted that Coinbase’s current tokenized equity offerings already meet many SEC criteria, including providing shareholder rights and dividends comparable to underlying shares.
To fulfill these requirements, Coinbase CEO Brian Armstrong stated that voting rights features will be rolling out soon. This component is crucial to ensure token holders have equal standing with conventional equity investors. The Citizens report also highlighted Coinbase’s broad reach across various sectors, ranging from institutional custody services and stablecoins to its Base network built on Ethereum. The Coinbase Tokenize service is also prepared for other companies looking to bring their assets onchain.
However, Coinbase still faces one major technical hurdle. Its exchange currently operates on a central limit order book model, whereas the SEC’s exemption framework is tailored specifically for the AMM ecosystem. To comply with these new rules, Coinbase would need to build new AMM infrastructure or route its trading through AMM-based decentralized exchanges (DEXs) already running on the Base network.
Robinhood’s Outlook Amid Ownership Requirements
Separately, Robinhood was also cited as a potential beneficiary, although its offshore tokenized stock products do not yet meet the SEC framework standards. Robinhood’s current offerings are limited to price exposure via derivatives, without granting the full ownership rights required under the exemption rules.
These conditions indicate that both Coinbase and Robinhood must still revamp parts of their systems to fully capitalize on the regulator’s five-year relief. With regulations now opening the door for US stocks on public blockchains, the question remains as to who can complete the technological adjustments the fastest.
Source: CoinDesk.
Previously: SEC Exemption Requires Stock Tokens to Have Voting Rights - Synthetic Coins Officially Ruled Out
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
