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Robinhood CEO warns US risks losing financial edge without tokenization clarity

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Robinhood CEO Vlad Tenev warned that the US could lose its competitive edge in financial markets if regulators fail to provide clear rules for tokenized securities.

In a Jan. 28 op-ed for The Washington Post, Tenev argued that blockchain-based financial assets could broaden investment opportunities, allowing retail investors to participate in the early growth of high-profile private companies like OpenAI, SpaceX, and Stripe.

He highlighted that these firms have increasingly avoided public markets, limiting investment access to only the wealthiest individuals and widening the gap between institutional and retail investors.

According to Tenev:

“The world is tokenizing, and the United States should not get left behind. It’s time to update our conversation about crypto from bitcoin and meme coins to what blockchain is really making possible: A new era of ultra-inclusive and customizable investing fit for this century.”

Clear framework

Tenev outlined a path for regulators to integrate tokenized securities into the financial system, proposing a security token registration framework as an alternative to traditional IPOs.

He argued that companies should have a regulated option to issue tokenized equity, which would provide retail investors with early access to high-growth firms while maintaining proper disclosures and investor protections.

Additionally, he called for clear guidelines that would allow exchanges and broker-dealers to facilitate the trading of tokenized assets, ensuring liquidity and market stability.

Tenev also noted that the SEC’s accredited investor rule, which currently restricts private market investments to individuals meeting high-income or net-worth thresholds, is another critical issue for the industry.

He suggested updating the rule to allow broader participation based on financial literacy rather than wealth alone, a move he believes would democratize investment opportunities and bring US markets in line with other jurisdictions that have adopted more inclusive policies.