With a 42-page proposal offered to the US Capital Markets Board (SEC), Robinhood demanded regulatory clarity for the digitalization of real world assets (RWA) and the use of these assets in On-Chain stock transactions. It was stated that this initiative was aimed at modernizing US capital markets. The proposal includes a comprehensive framework for the export, storage and trade of tokenized assets in accordance with the regulations.
RWA and Crypto
According to Forbes, the application presented by Robinhood to the SEC Crypto Task Force was proposed that the token-based asset standards should be subject to the federal license, the integration of customer recognition (KYC) and the combat of money laundering (AML) processes should be used for token-based form S-1.
Mati Greenspan, the founder of Quantum Economics, said, “This proposal indicates that for the first time in the US, a mediator institution in the United States has put forward a applicable way to carry the existence of trillions of dollars to Blockchain.
According to Robinhood’s proposal, the real World Asset Exchange, which is planned to be established, is expected to work on Solana and Base networks. With this technology infrastructure, it is aimed that stocks can be traded safely and quickly in digital environment.
Rise in crypto currencies
The company’s proposal aims to increase financial transparency and increase productivity in the markets by being loyal to the spirit of the existing securities laws. In case of adoption of tokens, it is foreseen that the position of US stock exchanges and companies in the global market can be strengthened.
Robinhood CEO Vlad Tenev, in a statement last month, the presence of digital assets as a token, the US stock market can secure the global superiority, he added. In addition, stablecoins may increase the demand for US dollar among international investors.
Robinhood CEO Vlad Tenev said, “Tokenizing of securities allows you to be a partner for companies. Stablecoins can increase the demand among individuals abroad as governments seek alternatives. Stablecoins regulations increase the effectiveness of the US dollar, while token has increased the effectiveness of the US companies.
The evaluation process of SEC’s proposal continues and has not been given an official response so far. It is foreseen that such initiatives on regulations may accelerate digitalization efforts, especially in the US capital markets.
On May 19, we moved the SEC member Hester’s flexibility demands in RWA. Now Robinhood takes the step to start the process.
The implementation of such initiatives may contribute to increasing transparency and liquidity in financial markets and to reduce costs. It can also make it possible for the wider audience to access digital assets. However, the final decision is expected to become clear with the official statement to be made by the SEC.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
