Coinbase Stock Rises as CFTC Proposes Crypto Regulations

Coinbase Global Inc. (NASDAQ:COIN) shares are surging Friday along with other crypto-linked stocks as Bitcoin (CRYPTO: BTC) rises following a CFTC proposal this week to regulate crypto asset transactions and markets. Coinbase Global stock is among today’s top performers. Why are COIN shares rallying? SEC Creates a Framework for Tokenized Stock Trading The SEC introduced a five-year pilot program allowing qualified trading platforms to offer blockchain versions of U.S.-listed equities, with a catch: those tokenized shares have to carry the same dividend payments and voting rights as ordinary shares, and trading has to freeze whenever the actual stock’s exchange pauses activity. Robinhood has positioned itself well ahead of this shift, having already run a similar model overseas. CEO Vlad Tenev has noted the company offers around 200 tokenized versions of U.S. stocks to customers in more than 120 countries internationally, though that access still isn’t extended to American users. The SEC’s new pilot program could eventually give Robinhood room to bring that international offering stateside, though the rules governing it remain both temporary and narrowly defined for now. CFTC Loosens Requirements for Prediction Market Platforms At the same time, the CFTC gave the green light this week to a category of technology providers it labels “passive software,” letting them connect users to CFTC-regulated products, including prediction markets, without having to register as brokers themselves, so long as they stay out of handling customer funds and don’t influence how trades get carried out. The framework mirrors an approach already in use at crypto wallet Phantom, where more than 20 million users can already access similar prediction market features, and it remains valid only until the agency puts permanent rules in place. Regulators Move Forward After Congress Stalls On CLARITY Act Both regulatory actions land just after Congress hit a wall on crypto legislation, with the CLARITY Act coming up 11 votes shy of the 60 required to move forward this week. Wyoming Sen. Cynthia Lummis, who had pushed hardest for the bill’s passage, signaled that effort was essentially dead. With Capitol Hill unable to pass comprehensive crypto rules, the CFTC and SEC appear to be filling that vacuum on their own, moving forward with regulatory action independent of congressional gridlock. COIN Shares Are Flying COIN Price Action: Coinbase shares were up 12.16% at $195.12 at the time of publication on Friday, according to Benzinga Pro. Read Also: Bitcoin Tops $80,000, S&P 500 Slips as Yields Reclaim 5%: Stock Market Today Image: miss.cabul/Shutterstock.com