Robinhood Presses SEC for Clarity on Tokenizing RWAs in Bid for On-Chain Stock Trading: Report

Robinhood has recently submitted a comprehensive 42-page proposal to the U.S. Securities and Exchange Commission (SEC) in an effort to seek regulatory clarity on the tokenization of real-world assets (RWAs) and its potential application to on-chain stock trading. The proposal, as reported by Forbes, was filed with the SEC’s Crypto Task Force and aims to establish a framework for compliant issuance, custody, and trading of tokenized assets with the goal of modernizing US capital markets.

According to Mati Greenspan, founder of Quantum Economics, this proposal could be groundbreaking as it could potentially pave the way for bringing trillions of dollars in assets onto the blockchain without compromising regulatory integrity. If the SEC embraces this proposal, it would signal to the world that tokenization has a legitimate place in traditional finance.

The plan put forth by Robinhood includes the establishment of federally licensed tokenized asset standards, the integration of Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols, and a modified Form S-1 for tokenized securities. Additionally, the proposed Real World Asset Exchange (RRE) would operate on the Solana (SOL) and Base blockchains.

In a statement last month, Robinhood CEO Vlad Tenev emphasized the importance of tokenizing traditional assets in securing the dominance of the US equities market. Tenev highlighted how tokenization of securities allows for ownership in companies and how stablecoins could potentially increase demand among individuals overseas, thereby pushing forward US company dominance in the global market.

As of now, the SEC has not issued a formal response to Robinhood’s proposal. It remains to be seen how regulators will react to this innovative approach to on-chain stock trading and the tokenization of real-world assets.

For the latest updates and news in the world of cryptocurrency and blockchain technology, be sure to follow us on X, Facebook, and Telegram. Don’t miss out on any important updates – subscribe to get email alerts delivered directly to your inbox. Stay informed about price action and check out The Daily Hodl Mix for a curated selection of articles and news.

The featured image for this article is credited to Shutterstock/Space Wind.