Robinhood Stock Token Volume Nears SEC Exemption Caps
Robinhood's stock token trading volume has reached high levels that may soon hit limits set by the US Securities and Exchange Commission's (SEC) new five-year innovation exemption for tokenized equities, according to the company's crypto chief.
The SEC framework limits both the number of eligible tokenized stocks and their trading volume, with thresholds varying depending on the underlying asset. Robinhood's existing Stock Tokens do not have the same legal structure as the tokenized NMS stocks covered by the exemption.
Ryan Kerbrat, Robinhood's senior vice president and general manager of crypto and international, said the company is still working through the conditions attached to the SEC order. He noted that the limits could become relevant given the activity Robinhood is already seeing, but viewed the SEC's decision as a sign that the regulator wants to work with the industry on bringing equities onchain.
Ryan Kerbrat also stated that Robinhood plans to introduce voting rights and in-kind redemption for its Stock Tokens. This change aims to make the company's products more compliant with the SEC exemption, which requires tokenized NMS stocks to provide holders with the same shareholder rights as conventional shares.