Coinbase Global (NASDAQ: COIN) shares were up 5.25% to $204.44 at 9:31:44 a.m. ET Monday, shortly after regular trading began, as Bitcoin climbed above $85,000, its highest level since January.
Other crypto-linked stocks also moved higher, including Strategy (NASDAQ: MSTR), Robinhood Markets (NASDAQ: HOOD), Webull (NYSE: BULL), Riot Platforms (NASDAQ: RIOT), MARA Holdings (NASDAQ: MARA), Bit Digital (NASDAQ: BTBT), American Bitcoin (NASDAQ: ABTC), Circle Internet Group (NYSE: CRCL) and Canaan (NASDAQ: CAN).
Beyond the broader crypto rally, Coinbase was also in focus after expanding IPO access for eligible U.S. customers and as a new SEC exemption established a regulatory framework for certain tokenized-stock trading venues.
SEC Issues Exemption for Tokenized Stock Venues
The U.S. Securities and Exchange Commission on Sept. 17 announced a five-year “Innovation Exemption” covering certain venues that trade tokenized National Market System stocks.
The exemption provides temporary and conditional relief from the definition of an exchange for qualifying Tokenized Securities Venues using permissioned automated market makers and liquidity pools.
Under the framework, tokenized securities must provide the same rights and privileges as the corresponding traditional securities. The SEC also set conditions covering eligible securities, trading activity, issuer objections, disclosures, technology requirements, and trading halts.
The exemption does not amount to specific approval for Coinbase to operate a U.S. tokenized-stock venue.
Coinbase has previously outlined plans to expand beyond cryptocurrency trading through what it calls an “Everything Exchange,” including stocks, derivatives and tokenized assets.
Bernstein Cites Coinbase in Tokenization Note
Bernstein analyst Gautam Chhugani identified Coinbase as one of the companies positioned to benefit from the SEC’s tokenization framework, alongside Robinhood, Bullish, Figure Technologies and Circle.
Bernstein said the new rules bring tokenized-equity trading on public blockchains within the U.S. securities regulatory framework. The firm said competition in tokenized securities will center on building onshore distribution, liquidity and 24/7 price discovery, areas where broker-exchanges such as Coinbase can participate as tokenized-equity trading develops.
Bernstein also noted that Coinbase has already launched offshore trading of U.S. stock tokens. Coinbase separately offers Coinbase Tokenized Stocks to eligible non-U.S. users. Coinbase says the B20 tokens are issued on Base and backed 1:1 by underlying shares held in regulated custody; they are not available to U.S. persons or other restricted jurisdictions.
Coinbase Opens IPO Access to U.S. Customers
Coinbase said Monday that eligible U.S. customers can request allocations in upcoming IPOs through its app, beginning with Oura’s offering this week.
The company said requests may be filled in full, in part, or not at all, depending on available shares and demand.
Clear Street Raises Target; Baird Stays Neutral
Clear Street analyst Owen Lau reiterated a Buy rating on Coinbase on Monday and raised his price target to $224 from $204.
Baird reiterated its Neutral rating on Coinbase following the SEC announcement and maintained a $130 price target. The firm described the SEC’s Innovation Exemption as a positive development for Coinbase, particularly amid delays to the CLARITY Act.
Baird said the exemption could bring Coinbase’s asset-class offering closer to Robinhood’s by allowing tokenized equities with shareholder rights. The firm also cited recovering trading volumes, favorable regulatory developments and Coinbase’s continued expansion of its “Everything Exchange” strategy.
Separately, Coinbase Derivatives filed on Sept. 18 for rules governing cash-settled futures on individual equity securities and exchange-traded fund shares, including perpetual single-stock futures. CFTC records list its Single Stock Perpetual Futures Contract as “Approval Pending (45),” while the SEC notice said the proposed rule change had also been submitted to the CFTC and had not yet been approved by the agency.
COINB Rises Alongside Coinbase Shares
Meanwhile, Coinbase Tokenized bStocks (COINB), a tokenized instrument linked to Coinbase shares, also traded higher.
In a Monday morning snapshot, CoinMarketCap showed COINB at about $204.59, up 6.36% over 24 hours. The token reached an all-time high of about $205.35 on Monday.
COINB is a bStocks tokenized security available on Binance; it is neither Coinbase Global’s Nasdaq-listed common stock nor part of Coinbase’s own Coinbase Tokenized Stocks product. Binance lists COINB as a bStocks token on BNB Smart Chain, while Coinbase’s tokenized stocks are B20 tokens issued on Base.
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