Robinhood CEO Vlad Tenev recently spoke out about the urgent need for clear regulations on tokenized securities in the U.S. He echoed the sentiments of BlackRock CEO Larry Fink, emphasizing that without these regulations, the U.S. risks falling behind.
Tenev pointed out that tokenization could open up private market investments that are currently only available to wealthy individuals. He stated, “The world is tokenizing, and the United States should not get left behind.”
Right now, U.S. regulations are blocking significant changes in finance. Many high-growth companies, like OpenAI and SpaceX, are choosing to stay private. This limits investment opportunities to a small group of rich investors, widening the gap for everyday people.
Tenev believes that using blockchain technology to tokenize private equity could change this. It would allow retail investors to access companies early in their growth stages. This approach lowers barriers while ensuring proper disclosures and protections for investors.
He urged for a shift in the conversation around crypto. Instead of just focusing on Bitcoin and meme coins, he wants to highlight what blockchain can truly offer: a new era of inclusive and customizable investing.
However, Tenev expressed concern about the lack of a clear framework from regulators like the SEC. Other markets, such as the EU and Singapore, are already making progress in this area.
To tackle these issues, Tenev proposed creating a registration framework for security tokens. This would serve as an alternative to traditional IPOs. It would provide clear guidelines for exchanges and broker-dealers, and update rules for accredited investors to allow access based on knowledge rather than wealth.
Tokenization is rapidly emerging at the crossroads of crypto and traditional finance. Experts predict it could become a multitrillion-dollar market in this decade. Institutions and governments are increasingly exploring ways to represent real-world assets—like bonds and real estate—on the blockchain for faster settlements and broader access.
Tenev isn’t alone in his advocacy. Larry Fink has also recognized tokenization as the next big thing. He recently urged the SEC to “rapidly approve” the tokenization of stocks and bonds.