Robinhood CEO: Uncertainty Over US Tokenization Rules Deters Large Asset Commitments

October 28 – According to Cointelegraph, Robinhood CEO Vlad Tenev said on the third-quarter earnings call that the SEC's innovation exemption is a positive step, but uncertainty over US tokenization rules could deter investors from committing substantial assets, and further rulemaking or legislation is still needed to provide long-term regulatory certainty. He said clients are unsure where the rules will stand in five years, which may make them reluctant to put significant assets into tokenized markets.

Tenev also said Robinhood plans to launch tokenized shares of private companies overseas, depending on regulatory arrangements; in the US, the company is looking for a path that satisfies current accredited investor restrictions. About 200 stock tokens are offered on Robinhood Chain, backed by the underlying shares, but structured as tokenized debt securities that provide economic exposure rather than the shareholder rights of traditional equities, and therefore fall outside the scope of the SEC's innovation exemption.

As previously reported, Robinhood's third-quarter crypto revenue fell 55% year over year to $120 million, while crypto notional trading volume dropped 38% to $50 billion; prediction markets revenue grew sixfold to $173 million.