Key dealers
- Coinbase revives plans to tokenize its $ coin warehouse and other securities in the United States following Sec’s creation of a new crypto working group.
- Tokenized securities offer investors benefits such as voting rights and profit sharing while improving transaction efficiency.
Coinbase renews its effort to tokenize its own warehouse coin as part of a broader driving force to bring security to the US market, an initiative it first tried in 2020 but abandoned due to regulatory obstacles.
With a newly formed crypto working group at SEC, the company sees a renewed opportunity to integrate blockchain-based securities into traditional financing.
Crypto Exchange -Company’s CFO Alesia Haas expressed optimism for regulatory development during Morgan Stanley TMT Conference.
“I now think that our American supervisory authorities are looking for product innovation and want to move forward,” Haas said.
HAAS revealed that Coinbase originally planned to publish by issuing a security token that represents its $ coin warehouse, in line with its vision to integrate blockchain into traditional financing.
Regulatory barriers, including the lack of US exchanges that are licensed to the trading safety token and the need for further approvals, forced the company to abandon the plan in favor of a traditional direct listing in April 2021.
The company now sees the potential to expand its offers, with Haas, which indicates that they could introduce internationally available products to the US market, which is already widely used by crypto dealers globally.
Security tokens, which act as traditional securities but act on blockchain networks, can give investors voting rights and profit sharing mechanisms while improving transaction efficiency.
This renewed driving force follows previous regulatory challenges, including SEC’s trial against Coinbase, which accused the company of acting as an unregistered exchange, broker and clearing agency.
But SEC officially requested Rejecting the case with prejudice, which means that it cannot be refilled, which signals a major change in the regulatory sentiment.
Coinbase CEO Brian Armstrong has been highlighted the potential benefits of tokenized securities and says they can offer consumers the ability to trade around the clock.
The company previously detailed its commitment to digital securities infrastructure in its 2020 S-1 archiving and has developed a framework for blockchain value paper laws for compliance purposes.
Armstrong will participate in the first summit in the White House with President Donald Trump on Friday and highlights the growing dialogue between the crypto industry and decision makers.
