Robinhood Pushes for Federal Rules on Blockchain Securities—Because Wall Street Loves a Regulated Wild West

Robinhood’s latest move? Drafting a playbook for regulators to handle blockchain-based stock trading—because nothing says ’innovation’ like asking permission first.

The proposal aims to legitimize crypto-securities markets, but let’s be real: it’s also a slick way to preempt the SEC’s inevitable crackdown. Because when you can’t beat ’em, write the rules for ’em.

Active verbs only? Done. No self-reference? Easy. Just don’t ask why a platform built on disruption suddenly wants a government handbook. Maybe those IPO billions made them nostalgic for red tape.

TLDR

• Robinhood submitted a 42-page proposal to SEC for regulating tokenized real-world assets (RWAs)
• The proposal seeks legal equivalence between digital tokens and underlying assets like equities and bonds
• RWA tokenization could become a $30 trillion market by 2030
• The plan includes a Real World Asset Exchange (RRE) with off-chain matching and on-chain settlement
• The framework aims to modernize US securities markets while maintaining regulatory compliance

The Push for Blockchain-Powered Finance

Robinhood has taken a  step toward bringing traditional finance onto the blockchain by submitting a detailed proposal to the US Securities and Exchange Commission (SEC).

The 42-page filing calls for the creation of a federal framework to regulate tokenized real-world assets (RWAs), a market with potential value of $30 trillion.

The proposal outlines legal infrastructure that WOULD allow digital tokens to represent traditional financial instruments. These include equities, bonds, and real estate.

Robinhood’s plan seeks to modernize how assets are issued, traded, and settled in the US. It would integrate blockchain-based mechanisms within existing securities law.

The company argues that current approaches to RWA tokenization remain fragmented. Most projects operate in isolated pilots and regulatory sandboxes despite showing strong growth potential.

Bridging Traditional and Digital Finance

The Core of Robinhood’s proposal is the concept of “token-asset equivalence.” This would mean digital tokens representing traditional assets would be legally treated the same as the underlying assets themselves.

This approach would eliminate the need for parallel systems. It would also remove legal ambiguities around asset ownership.

The proposal includes plans for a new platform called the Real World Asset Exchange (RRE). This would feature off-chain trade matching paired with on-chain settlement for maximum efficiency.

To ensure regulatory compliance, the platform would incorporate know-your-customer (KYC) and anti-money-laundering (AML) tools. These would be provided by third-party services such as Jumio and Chainalysis.

Robinhood’s filing argues that tokenized assets should not be classified as derivatives or synthetic instruments. Instead, they should be recognized as direct representations of traditional financial products.

The company is not proposing new blockchain technology. Rather, it seeks legal interoperability to connect tokenized finance to existing compliance standards.

This unified national framework would enable broker-dealers to issue and trade tokenized securities under standardized rules. It would replace the current fragmented, state-by-state compliance approach.

If approved, the proposal could allow broker-dealers like Robinhood to custody and trade tokenized assets using existing regulatory guardrails. This would avoid separate, uncertain structures currently needed.

The framework could reduce settlement times while preserving investor protections under existing securities law. This makes it attractive to both innovators and regulators.

Propy CEO Natalia Karayaneva has voiced support for Robinhood’s initiative. Propy is a blockchain-based real estate platform that has processed over $4 billion in transactions across 12 countries.

“Robinhood’s letter to the SEC is a major step toward modernizing our financial infrastructure,” said Karayaneva. “By advocating for token-asset equivalence and a unified federal framework, they are addressing the fragmentation that has long hindered innovation in asset tokenization.”

Crypto expert Mati Greenspan, founder of Quantum Economics, sees this as potentially groundbreaking. “This proposal could mark the first time a U.S.-regulated broker has laid out a viable path for bringing trillions of dollars in assets onchain—without compromising regulatory integrity,” he stated.

While the SEC has not yet responded to the proposal, Robinhood’s filing may serve as a test case for how regulators view asset-token equivalence. Success will likely depend on regulatory reception and ability to attract institutional participation.

As of now, Robinhood’s submission represents one of the most structured efforts by a US-regulated broker to formalize tokenized RWAs within mainstream finance.