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.
Growing momentum
Tenev’s remarks reflect a growing push among financial leaders for regulatory clarity on tokenization. He recently urged the SEC to approve tokenization efforts to modernize traditional finance.
Meanwhile, BlackRock CEO Larry Fink recently called tokenized securities the “next frontier” in financial markets, arguing that the tokenization of stocks and bonds could make capital markets more efficient.
Industry analysts expect tokenization to become a multitrillion-dollar market in the coming years, with McKinsey, BCG, and Bernstein forecasting a rapid expansion of blockchain-based real-world assets.
Institutions and even governments are increasingly exploring tokenization for bonds, funds, commodities, and real estate, seeking faster settlement times and broader investor participation.
Despite mounting industry support, US regulators have yet to establish a clear framework, raising concerns that the country could fall behind financial hubs like the EU, Singapore, and Abu Dhabi.
Tenev warned that unless the US acts swiftly, it risks losing its leadership in capital markets as other jurisdictions embrace the next phase of financial innovation.
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