Robinhood CEO warns of US regulation deficiency confirming security tokenization efforts
Current US regulations are blocking a major financial shift that can open private market investments to daily investors through tokenization, the CEO of Digital Brokerage Robinhood Vlad Tenev said.
On a Wednesday Opinion Piece For the Washington Post, Tenev said many high-growth companies such as Openai, Spacex and Stripe are increasingly avoiding going public, limiting investment access to a small circle of wealthy Investors, expand the investment gap between retail investors.
The tokenizing private equity through the blockchain technology that undergoes crypto markets will allow the retail to access companies in advance of their stages of growth, lowering barriers while maintaining proper disclosure and investor protections, Tenev argued.
“The world is tokenizing, and the United States should not be left behind,” Tenev wrote. “It’s time to update our conversation about crypto from Bitcoin coins and meme to what is possible Blockchain is possible: a new era of ultra-inclusive and customizable investment suitable for this century . ”
However, US regulators, especially the Securities and Exchange Commission (SEC), have not yet provided a clear framework and policies for registering security tokens, while other major markets such as EU , Singapore and Abu Dhabi are promoting this place, he says.
He suggested creating a security token outline of registration as an alternative to IPOs, providing clear guidelines for exchanges and broker sellers to support tokenized assets and updates of Rules to accredited investors to allow access based on financial knowledge rather than wealth.
Tokenization is a emerging sector at the intersection of crypto and traditional finances that can be a multitrillion-dollar market this decade, every forecasting of McKinsey, Bcg, 21shares and Bernstein . Institutions and even governments are further exploring the placement of real-world assets such as bonds, funds and goods and real estate on blockchain metals in a digital token form to achieve repairs of speed and greater access to the investor.
Tenev is the latest high-profile leader in the world’s tokenization of positioning and calling clear policies for tokenized securities. Larry Fink, CEO of $ 10 trillion asset manager Blackrock, recently Says That tokenization is the next border that will change markets, and drive the SEC to a CNBC interview to “quickly approve” tokenization of stocks and bonds.
