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SEC Exemption Positions Coinbase, Robinhood, and Circle for Gains

By Markets Desk · 2026-09-20 · 2 min read
A digital stock certificate merging into a blockchain node structure.
Illustration: Tradingbird

The SEC's five-year innovation exemption allows tokenized U.S. stocks to trade on public blockchains. Analysts identify Coinbase, Robinhood, and Circle as primary beneficiaries of this regulatory shift.

The Securities and Exchange Commission approved a five-year innovation exemption for tokenized U.S. stocks. This move allows these digital assets to trade through automated market makers on public blockchains. The framework requires tokens to preserve shareholder rights such as dividends and voting. It also imposes limits on trading volume and the number of available stocks.

Goldman Sachs and Citizens analysts report that Coinbase, Robinhood, and Circle stand to benefit most. These firms possess the infrastructure needed for custody, tokenization, and settlement. The exemption creates new opportunities in onchain trading without displacing traditional exchanges. The scope of the experiment is currently narrow but sets a precedent for broader adoption.

Coinbase Holds Strongest Infrastructure Position

Coinbase is positioned to capitalize on the exemption across multiple business units. Its existing tokenized-equity offering already includes shareholder rights and dividends. CEO Brian Armstrong confirmed that voting rights are coming soon. This feature is critical for compliance with the new SEC framework.

The company also operates an institutional custody business and Coinbase Tokenize. These services provide infrastructure for other firms to put assets onchain. Analysts note that Coinbase must adapt its trading venues. The SEC framework relies on automated market makers, while Coinbase uses central limit order books.

Robinhood Requires Product Development for Compliance

Robinhood’s current offshore stock tokens do not meet the new requirements. These products provide price exposure without full ownership rights. The SEC framework mandates that issuers retain the right to object to unauthorized tokenization. This rule addresses concerns raised by companies like AMC Entertainment.

CEO Vlad Tenev signaled that additional features will be added to stock tokens. These include share redemptions and voting rights. Citizens analysts expect Robinhood to move quickly to implement these changes. The company is also expanding its Arbitrum-based Robinhood Chain.

Circle Benefits from Increased Settlement Demand

Circle is an indirect beneficiary of the tokenized stock push. Increased onchain trading activity drives demand for stablecoin settlement. USDC is expected to be used for collateral and transaction settlement. Both Goldman Sachs and Citizens highlight this opportunity in their reports.

The growth in tokenized securities trading correlates with higher stablecoin usage. This dynamic supports Circle’s core business model. The SEC’s limits on trading volume protect traditional exchanges from significant competition. The overall impact remains focused on specific infrastructure and settlement layers. CoinDesk reported that these companies are early winners in this evolving market.

Based on reporting by CoinDesk, compiled by the Tradingbird desk.

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