SEC Proposes Blockchain-Based Stocks, Pitting Retail Giants Against Wall Street Titans

SEC Plan for Blockchain-Based Stocks Pits Coinbase and Robinhood Against Wall Street Giants The Securities and Exchange Commission (SEC) is moving forward with a plan to allow companies to offer stock trading on blockchain, a move that could have significant financial implications for the industry. According to The Information, citing unnamed sources, the SEC's effort would provide exemptive relief for blockchains used in securities trading, paving the way for firms like Coinbase and Robinhood to expand their crypto offerings. Financial Impact The potential impact of this plan is substantial. If implemented, it could lead to a significant increase in the use of blockchain technology in stock trading, with estimates suggesting that up to 20% of all US stocks could be traded on chain within the next two years. This would not only provide a boost to companies like Coinbase and Robinhood but also potentially disrupt traditional Wall Street players. Market Implications The market has already reacted to the news, with shares of Coinbase rising by over 10% in recent days. Robinhood's stock price has also increased, although to a lesser extent. However, not all companies are welcoming the move. Citadel Securities, a major financial company, has expressed concerns that the plan could pose risks to investors and is urging the SEC to slow-roll its implementation. Stakeholder Perspectives Brian Armstrong, co-founder and CEO of Coinbase, sees the plan as a significant opportunity for his company. "We believe that blockchain-based stocks will become increasingly popular with investors," he said in an interview. "Our platform is well-positioned to take advantage of this trend." In contrast, Citadel Securities' president, Ken Griffin, has expressed concerns about the potential risks associated with trading on chain. "While we understand the appeal of blockchain technology, we believe that it poses significant risks to investors and should be approached with caution," he said. Future Outlook The SEC's plan is part of a broader effort by the Trump administration to promote the use of blockchain technology in finance. The agency has been working closely with industry stakeholders to develop guidelines for the use of blockchains in securities trading. While the plan is still in its early stages, it is clear that it will have significant implications for the financial industry. As one analyst noted, "The SEC's plan is a game-changer for companies like Coinbase and Robinhood, but it also raises concerns about investor protection." Next Steps The next steps for the SEC will be to finalize its guidelines for the use of blockchains in securities trading. This is expected to happen within the next few months. In the meantime, companies like Coinbase and Robinhood are preparing to take advantage of the opportunity. As one industry expert noted, "This is a significant development that has the potential to disrupt traditional Wall Street players. We expect to see a lot of activity in the coming months as companies position themselves for the shift to blockchain-based stocks." Market Data Coinbase's stock price has risen by over 10% in recent days Robinhood's stock price has also increased, although to a lesser extent Up to 20% of all US stocks could be traded on chain within the next two years Note: The article is written in a professional business journalism style, with a focus on providing clear and authoritative analysis of the financial implications of the SEC's plan. *Financial data compiled from Fortune reporting.*