Analysts say Coinbase, Robinhood, and Circle are positioned to benefit from new SEC crypto stock rules

Financial firms view new SEC rules as a win for crypto platforms

Analysts at Goldman Sachs and Citizens say three major companies—Coinbase, Robinhood, and Circle—are well-positioned to benefit from the U.S. Securities and Exchange Commission’s (SEC) new five-year innovation exemption.

This rule allows specific types of tokenized U.S. stocks to trade on public blockchains using automated market makers. The exemption is designed to let these digital versions of traditional stocks trade in a more open, digital environment while keeping specific safety measures in place.

Key points for each company

• Coinbase: Its existing services for holding crypto assets and issuing tokenized stocks already meet many of the SEC’s new requirements. The firm is working to add voting rights to these tokens, which would give holders the same power as standard stock owners.
• Robinhood: While its current overseas tokenized stock products do not follow the new U.S. rules, analysts expect the company to quickly build compliant versions. The firm is already developing its own digital infrastructure for these types of assets.
• Circle: The issuer of the USDC stablecoin (a digital asset designed to hold a steady value) stands to gain from increased activity. New stock trading will likely require stablecoins to settle transactions, meaning more USDC will be used in financial markets.

What the analysts note

According to reports, traditional stock exchanges are unlikely to face immediate, severe competition from this change. The SEC’s rules include limits on how much trading can occur and allow companies to block third-party token versions of their shares. This protects established markets while still opening the door for crypto platforms to offer these new products.

Sources

• CoinDesk