Coinbase (COIN) Stock: Shares Rally as Crypto Exchange Seeks SEC Approval for Tokenized Stock Trading

TLDR

Table of Contents

Coinbase is seeking SEC approval to launch tokenized stock trading, which would allow blockchain-based trading of digital versions of stocks with 24/7 availability and lower costs
The Senate passed the GENIUS stablecoin bill 68-30, providing regulatory framework for dollar-pegged digital tokens and requiring full reserve backing and monthly audits
Coinbase announced Coinbase Payments, a new stablecoin payments solution already integrated with Shopify for 24/7 USDC transactions
Coinbase stock surged 16.3% to $295.29, breaking past a $277.01 buy point and entering the buy zone
Traditional payment stocks fell on the news, with Visa down 4.9%, Mastercard down 5.4%, and PayPal dropping 3%

Coinbase stock rocketed 16.3% Wednesday to close at $295.29 after the crypto exchange announced plans to seek SEC approval for tokenized stock trading. The move would put Coinbase in direct competition with traditional brokerages like Robinhood and Charles Schwab.

The company’s chief legal officer Paul Grewal told Reuters that Coinbase wants to offer digital versions of stocks known as tokenized equities. These would trade on blockchain networks instead of conventional exchanges.

The tokenized stock model could enable round-the-clock trading and reduce transaction costs. It would also eliminate clearing intermediaries from the process.

Coinbase already owns a broker-dealer license through a dormant affiliate. If approved, the initiative would position the company alongside retail brokerages that serve similar investor bases.

The crypto exchange is seeking either a no-action letter or an enforcement exemption from the SEC. Both options would provide regulatory cover for offering these products in the United States.

Tokenized equities aren’t currently legal to trade in the U.S. However, platforms like Kraken are piloting such offerings in overseas markets.

Coinbase’s timing comes as the regulatory environment appears more favorable under new SEC chair Paul Atkins. The agency has dropped several crypto-related lawsuits and established a task force for digital assets.

Grewal declined to confirm whether Coinbase had formally filed its request with regulators. He noted that clear SEC guidance has been missing from the process.

Senate Passes Stablecoin Legislation

The stock surge also came after the Senate passed the GENIUS stablecoin bill on Tuesday. The legislation passed with a 68-30 vote and now heads to the Republican-controlled House.

$COIN 🚀
Market is slowly discovering that Coinbase gets 50% of $CRCL revenue generated from USDC + 100% of revenue from USDC on Coinbase platform + an equity stake
+ GENIUS Act just passed the Senate. It's a Stablecoin Summer 🌊
+ they're filing to tokenize stocks on platform… pic.twitter.com/ADRmRQ16Si
— GENCO (@gencostocks) June 18, 2025

The bill provides a regulatory framework for digital tokens pegged to the U.S. dollar. It requires full reserve backing for issuers along with monthly audits and anti-money laundering compliance.

Nathan McCauley, CEO of crypto bank Anchorage Digital, called the bipartisan support years in the making. He said the legislation will lead to greater industry changes.

New Payment Solution Launch

Coinbase also announced Coinbase Payments on Wednesday afternoon. The new solution allows customers to make stablecoin payments on various commerce platforms.

The payment system is already live with Shopify integration. This allows for 24/7 USDC stablecoin payments across the Shopify ecosystem.

Coinbase stock closed around mid-February levels with the 16.3% gain. Shares overtook a $277.01 buy point and rallied past the entry’s buy zone of $290.86.

The result leaves COIN stock up almost 19% year-to-date. The stock has recovered from earlier declines and entered new territory.

Traditional payment stocks moved in the opposite direction Wednesday. The crypto developments appear to be pressuring legacy payment companies.

Visa fell 4.9% and is tracking toward its second consecutive weekly decline. The Dow Jones component had been trading in a buy zone at record highs last week.

Mastercard dropped 5.4% back near early May levels. The stock had mounted a strong rebound since April to a record high of $594.71 on June 13.

PayPal slumped about 3% Wednesday, adding to its 19.7% decline this year. The stock continues to face pressure from various competitive threats.

Coinbase’s push into tokenized equities represents a strategic shift for the crypto exchange. The company is looking to expand beyond its core cryptocurrency trading business into traditional securities.

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