With the recent changes in the U.S. crypto regulations under the Trump administration, Coinbase is renewing its previously stalled ambition to introduce tokenized securities to the U.S. market. This development could significantly alter the trading of conventional assets on the blockchain.
The initiative is being propelled by the Trump administration’s apparent open-mindedness towards cryptocurrencies, demonstrated by a series of dismissals from the U.S. Securities and Exchange Commission (SEC), including the regulator’s lawsuit against Coinbase. With the SEC’s crypto task force now active, Coinbase sees an opportunity to reintroduce tokenized securities to American investors, an endeavor it initially attempted but was unsuccessful around five years ago.
In its original S1 filing, Coinbase made mention of its security token, an issue that the company’s CFO, Alesia Haas, highlighted at the recent Morgan Stanley’s TMT Conference.
Haas expressed her belief that U.S. regulators are now more receptive to product innovation and progress. She recounted how Coinbase attempted to go public with a security token back in 2020, an effort that unfortunately met with significant hurdles.
A security token is a digital asset that signifies an investment in a business and usually provides voting or profit-sharing rights. Similar to traditional securities, security tokens utilize blockchain technology to simplify the processes of purchasing, selling, and tracking ownership.
With the SEC’s task force in place, Haas is optimistic about the possibility of advancing tokenized securities. She also hinted at introducing international products that are popular among crypto traders globally to the U.S. market.
Coinbase attempted to issue a tokenized COIN as part of its S1 process, but the SEC did not approve it at the time. Nonetheless, the company is exploring various options to bring tokenization innovation to traditional financial assets to make them more efficient and accessible.
Beyond this, Coinbase has also been proactive in supporting the launch and management of security tokens on its platform. As mentioned in their S-1 filing in 2020, Coinbase plans to invest in the necessary infrastructure and regulatory clarity to facilitate the digitization of more traditional financial assets.
Interestingly, Coinbase CEO Brian Armstrong is among the select group who will attend President Trump’s crypto summit. He expressed his interest in tokenized securities and equities, seeing the potential for consumers to trade 24/7.
