Robinhood's Stock Token Volume Hits SEC Limits Amid Wider Adoption Push

Rising demand for Robinhood's stock tokens may soon hit regulatory limits set by the US Securities and Exchange Commission (SEC). According to Johann Kerbrat, Robinhood's senior vice president and general manager of crypto and international, the company's stock token volume is already high enough to reach caps in the SEC's new innovation exemption. The exemption, issued on September 17, allows certain U.S. venues to trade tokenized versions of listed stocks without registering as exchanges.

The order includes restrictions on the number of symbols and trading volume, as well as requirements for tokens to carry the same rights as the underlying shares. Kerbrat stated that Robinhood will continue to push for wider adoption of stock tokens and coverage of U.S. stocks and ETFs, despite these limitations. The company plans to add in-kind redemption and voting rights to its stock tokens.

Kerbrat also addressed recent criticism from AMC Entertainment CEO Adam Aron, who called Robinhood's stock tokens 'illegal offerings.' Kerbrat dismissed the criticism as a 'marketing stunt,' stating that the company stands behind the legal structure of its systems.