Robinhood has submitted an in depth proposal to the US Securities and Trade Fee (SEC), calling for the creation of a federal framework to regulate tokenized real-world property (RWAs), which characterize a potential $30 trillion market, Forbes reported on Might 20.
The 42-page submitting outlines a authorized infrastructure that will enable digital tokens representing conventional monetary devices, resembling equities, bonds, and actual property, to be handled as equal to the underlying property.
The proposal aims to modernize how property are issued, traded, and settled within the US by integrating blockchain-based mechanisms inside present securities legislation.
Unified framework
Robinhood’s proposal emphasizes that present approaches to RWA tokenization have remained largely fragmented, working in remoted pilots and regulatory sandboxes despite staggering growth.
Against this, the corporate is advocating for a unified nationwide framework that will allow broker-dealers to situation and commerce tokenized securities underneath a standardized compliance mannequin, eradicating the necessity for parallel techniques.
In accordance to the report, the initiative contains plans for a brand new platform known as the Actual World Asset Trade (RRE), which might characteristic off-chain commerce matching paired with on-chain settlement.
The platform would incorporate know-your-customer (KYC) and anti-money-laundering (AML) instruments offered by third-party suppliers resembling Jumio and Chainalysis to guarantee compliance with world regulatory requirements.
If adopted, the framework may get rid of authorized ambiguities surrounding asset possession and cut back settlement instances, whereas preserving investor protections underneath present securities legislation.
Retail entry to market infrastructure
Robinhood, broadly recognized for its function in retail inventory and crypto trading, is now positioning itself as a contributor to regulatory infrastructure to carry conventional finance on-chain.
Its submitting argues that tokenized property shouldn’t be categorized as derivatives or artificial devices however acknowledged as direct representations of conventional monetary merchandise.
The report famous that the corporate just isn’t proposing new blockchain know-how, however fairly authorized interoperability to anchor tokenized finance to present compliance requirements.
Robinhood’s strategy seeks to open the door for broader institutional adoption, providing a scalable path to onchain monetary markets throughout the US authorized system.
Whereas the SEC has not but responded to the proposal, Robinhood’s submitting could function a check case for how regulators view asset-token equivalence. The success of the initiative will doubtless rely not solely on regulatory reception but in addition on the flexibility to appeal to institutional participation and display utility at scale.
As of now, Robinhood’s submission represents some of the structured efforts by a US-regulated dealer to formalize the function of tokenized RWAs inside mainstream finance.
