Coinbase and Robinhood Stocks Drop Amidst Regulatory Pressure Over Tokenized Securities

Cryptocurrency exchanges Coinbase Global (COIN) and trading platform Robinhood Markets (HOOD) saw their stock prices decline in premarket trading Monday following news reports of a potential regulatory crackdown on tokenized stocks. The World Federation of Exchanges (WFE), which represents global stock exchanges, urged regulators to impose stricter oversight on blockchain-based tokens that represent traditional securities. 2023 has seen significant gains for both companies, with COIN seeing a year-to-date rise of 28.82%, and HOOD surging 193.40%. This latest development threatens the expansion plans of these companies which have been heavily invested in tokenized securities.