SEC Approves Tokenized U.S. Stock Trading Framework, Goldmann Sachs Notes Coinbase Potential Benefits

The U.S. Securities and Exchange Commission (SEC) has issued a five-year conditional exemption allowing tokenized securities trading venues (TSVs) to trade certain U.S. stocks through licensed automated market makers (AMMs) and liquidity pools. The SEC permits TSVs to trade select American equities via AMM-based systems, with restrictions on tradable assets and transaction volumes. Tokenized stock holders retain the same rights as traditional shareholders, while underlying issuers can object before trading begins. Goldman Sachs noted in a report released on October 18 that platforms like Coinbase ($COIN) and Robinhood ($HOOD) could benefit from expanded tokenized stock markets, though it cautioned that issuer objection rights and trade restrictions would limit short-term competitive impact on traditional exchanges.