Robinhood CEO Vlad Tenev advocates for updated SEC investor rules to foster tokenization

Robinhood Markets founder Vlad Tenev published a pro-crypto op-ed in the Washington Post on Tuesday, arguing that the U.S. needs to update its investment laws to allow early-stage startups to tokenize their equity. 

“Finally, the U.S. is making up for lost time and taking crypto seriously,” Tenev wrote on X. “So many promising strides forward. It’s time to even further expand our understanding of what’s possible.”

In the opinion piece, Tenev argues that investing in early-stage private companies is needlessly restrictive in the U.S. and that regulators should work to change the laws and encourage the adoption of tokenization to make a more equitable situation. 

In particular, “accredited investor” laws in the U.S. that restrict private-market investments to those with a net worth over $1 million or income of over $200,000 have led to the concentration of wealth among the top 20%.

The piece was published amid a huge shakeup in the U.S. crypto industry as President Donald Trump settles into office. Just two weeks into his administration, Trump has already formed a crypto task force under acting SEC Chairman Mark Uyeda to design a new regulatory framework and signaled support for domestic projects. 

This is in stark contrast to the Biden administration’s approach to cryptocurrency. 

For instance, former SEC Chair Gary Gensler often said nearly all cryptocurrencies fell under existing securities rules. Further, many crypto firms — including Robinhood — argued that while firms dealing with crypto were encouraged to “register” with the SEC, the agency did not make it easy. 

In a September House Financial Services digital asset-focused subcommittee hearing, the chief legal, compliance and corporate affairs officer at Robinhood Markets, Dan Gallagher, disclosed the firm attempted and failed to obtain a special purpose broker-dealer license for crypto. 

Gallagher, notably, was in the running to be named SEC chair under Trump. It is unclear if the SEC still intends to sue Robinhood related to its cryptocurrency listings after receiving a Wells Notice last year indicating the firm of potential securities law infractions. 

In addition to updating accredited investor laws to allow for “self-certification” rather than someone’s level of wealth, Tenev argues the SEC should also establish a security token registration regime, allowing companies to offer tokens to U.S. investors., as well as “a clear set of guidelines” for U.S.-based broker-dealers and exchanges to list these tokens.

“Because private-company stock is already regulated as a security by the SEC, the commission is best positioned to swiftly modernize our securities laws and make tokenization of real-world assets possible,” Tenev wrote. 

Tenev adds that the European Union, Hong Kong, Singapore and Abu Dhabi are all ahead of the U.S. in passing comprehensive crypto rules.

“A new era of ultra-inclusive and customizable investing fit for this century," he said. "The world is tokenizing, and the United States should not get left behind."