Robinhood CEO Vlad Tenev declared Thursday that "tokenization is coming to America." The reaction came after a fresh Securities and Exchange Commission order that opens a five-year regulatory
Robinhood CEO Vlad Tenev declared Thursday that "tokenization is coming to America." The reaction came after a fresh Securities and Exchange Commission order that opens a five-year regulatory pathway for tokenized U.S. stocks to trade on blockchain-based platforms.
The SEC's newly unveiled "Innovation Exemption" removes eligible tokenized securities venues from the traditional legal definition of an exchange.
It also gives automated market maker (AMM) liquidity providers relief from dealer-registration requirements, allowing tokenized National Market System stocks to trade. Regulators will work out permanent rules over the next five years, as Reuters reported.
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Tenev wrote on X that thanks to the SEC's leadership, Americans can finally access the benefits long associated with tokenization, instant settlement, round-the-clock trading, and fractional ownership by default.
He called it "a good day for U.S. innovation." That amplified Robinhood's own statement backing the SEC's move as a step toward giving Americans fair access to crypto-driven financial technology.
“Thanks to the SEC’s leadership, Americans can start to reap the benefits of tokenization: instant settlement, 24/7 trading, fractionalization by default and more. It’s a good day for U.S. innovation,” he shared.
According to Reuters, Robinhood has already been expanding tokenized-stock access abroad through its Arbitrum-based Robinhood Chain. Meanwhile, rivals like Coinbase are reportedly gearing up for similar moves at home.
The order effectively imports an AMM-based trading model, long common in crypto markets, into a limited slice of U.S. equities.
However, the SEC has drawn a clear line: eligible platforms must ensure tokenized shares carry the same rights as traditional stock, including dividends and voting power. Synthetic tokens that merely track a stock's price without representing real ownership are excluded.
The development comes days after the Senate failed to advance the Clarity Act, leaving broader crypto market-structure legislation stalled.
SEC Chair Paul Atkins described the exemption as a bridge toward durable rulemaking.
"The Innovation Exemption is designed to resolve challenges that have prevented responsible innovation from taking root in the United States while providing investor protections and market integrity standards," Atkins said in a statement.
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