Robin Hood CEO Vlad Tanev says uncertainty about the longevity of US tokenization rules could prevent investors from committing substantial assets to tokenized markets, despite the securities regulator opening a temporary path to on-chain stock trading this year.
Speaking during the third trimester of Robin Hood. Earnings Call on Tuesday, welcome to Tenev SEC’s Inventive Exemption But said more rulemaking or legislation would be needed to provide long-term regulatory certainty.
“As far as innovation immunity, I think it’s a really positive step…I think more needs to be done to give people a little bit of certainty because as we talk to customers, I think the uncertainty of what happens in five years can be a barrier to putting serious assets on this technology.”
Tokenized stock offerings have faced resistance from traditional issuers. Microsoft, Alphabet and Goldman Sachs were involved. 16 companies objected. His stake in the proposed location of OKXICE is being offered, while AMC CEO Adam Aaron Criticized separately. Robin Hood’s tokenized stock products.
Despite regulatory uncertainty, Binance Research projects that the tokenized equity market could grow $349 billion by 2030 Under its base case scenario, from $4.43 billion as of September 15.
Related: SEC Flags Tokenization as High-Risk Area in 2027 Market Examinations
“So I still think some rulemaking or legislation will be necessary, although, of course, this is a positive step, and we hope to share more on our US tokenization plans in the near future.”
Asked about the private company’s stock tokens, Taniff said Robin Hood plans to launch the product overseas, subject to regulatory arrangements. In the US, Tenev said the company is working to find a way around existing accreditation hurdles.
Robin Hood offers surroundings. 200 stock tokens on the Robin Hood chain. The products are backed by underlying shares but structured as tokenized debt securities, which provide economic exposure without the same shareholder rights as traditional stocks.
This distinction leaves their current structure outside the SEC’s innovation exemption, which requires equitable rights, including dividend and voting rights.
Robinhood Crypto Revenue Drops 55%
Tenev’s comments came as Robinhood reported a 55% year-over-year drop in cryptocurrency revenue to $120 million in the third quarter, while crypto notional trading volume fell 38% to $50 billion.
Trading volume on the Robinhood app fell 48% to $21 billion, while Bitstamp volume fell 28% to $29 billion.
Robinhood’s forecast market trade went in the opposite direction. Event contract revenue increased sixfold to $173 million, while contract trade increased more than sevenfold to $16.4 billion.
In the broader business, total net income rose 12% to a record $1.42 billion, below analysts’ expectations. Adjusted earnings per share came in at $0.60, missing estimates by 4 cents.
Magazine: Crypto AI Can Outperform Stocks: Wall Street Veteran Jordi Visser
