What we’ve seen

Digital asset market participants in the U.S., including Robinhood, are currently navigating a fragmented and challenging regulatory landscape. This environment is marked by inconsistent state regulations and a lack of federal clarity, creating barriers to broader adoption of digital asset products in the U.S.

Today, it remains unclear which digital assets are considered securities versus commodities by the SEC and CFTC, and there is no clear path to registration for token issuers and crypto platforms under the federal securities laws. The lack of federal regulatory clarity has created an uneven playing field for market participants, hindering the broader adoption of digital asset products and services in the U.S. Robinhood is committed to helping advance a more transparent and tailored regulatory environment for digital assets.

What we’re doing

Robinhood disagrees with the argument that transactions in most digital assets are subject to the federal securities laws.  While Congress works on passing comprehensive legislation, however, the SEC must provide firms with immediate clarity and a straightforward path to registration should the agency consider certain types of transactions in specific tokens to be securities transactions. In the absence of immediate legislative action, the SEC can use its authority under Section 36 of the Securities Exchange Act to implement a provisional structure that allows crypto firms to register and operate with clear expectations. As our Chief Legal, Compliance, and Corporate Affairs Officer Dan Gallagher highlighted in his congressional testimony, this approach would establish essential guidelines—such as registration, custody, record-keeping, consumer protection, and reporting requirements—reducing the regulatory ambiguity currently facing the industry. The implementation of a  tailored, transparent registration process can provide much-needed clarity and stability, while fostering innovation.

Robinhood’s position

While a temporary SEC framework would provide immediate relief and clarity, only Congress can establish a comprehensive, tailored, and enduring regulatory structure for digital assets. Robinhood supports ongoing legislative efforts, such as the draft bills from the House Financial Services and Agriculture Committees, which aim to define a clear, balanced framework that encourages growth and safeguards investor protections. A dual approach—a provisional SEC framework paired with permanent Congressional legislation—would provide a balanced solution. This approach would safeguard investors, support U.S. competitiveness, and allow for responsible growth in digital assets, ensuring that innovation in crypto can continue to develop under a clear and fair regulatory framework. Learn more about Crypto at Robinhood here.

The promise of tokenization

Tokenization has the potential to transform financial markets by converting real-world assets (RWAs), such as stocks, ETFs, or other assets, into digital tokens that can be traded on blockchain-based platforms. Tokenization introduces a wide range of benefits, including streamlined settlement, lower frictional costs, fractionalization, 24/7 trading, and, if coupled with reforms such as expanding the “accredited investor” definition, the ability to open private markets to retail investors.

Despite these clear benefits, the lack of regulatory clarity in the U.S. hinders tokenization’s broader adoption. There continues to be uncertainty around the registration, secondary trading, and custody of tokenized assets, as well as ambiguities in asset classification. A cohesive, transparent framework would allow the U.S. to responsibly unlock tokenization’s potential, enabling innovation to flourish while maintaining robust investor protections. To learn more about our vision for unlocking tokenization’s potential, read here.

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