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Crypto Potato 2025-05-21 22:15:50

Robinhood Calls on SEC to Modernize RWA Regulation in 42-Page Proposal

Robinhood has submitted a proposal to the US Securities and Exchange Commission (SEC) calling for a standardized federal approach to regulating tokenized real-world assets. The latest move seeks to bring clarity and modernization to the financial system. Robinhood’s Proposal In a comprehensive 42-page submission , the trading platform argues that RWAs – blockchain-based representations of tangible assets such as bonds, real estate, and equities – should be governed under the same legal standards as their traditional equivalents. Rather than being categorized as derivatives or synthetic instruments, these digital assets would maintain their original financial identity. Robinhood argued that such a system in place would allow them to be easily integrated into the existing regulatory framework. The trading platform also added that the fragmented, state-by-state securities oversight currently in place is ill-suited for the emerging tokenized economy and poses a barrier to innovation. To address this, it proposes the creation of a Real World Asset Exchange (RRE), a venue designed for off-chain trade execution with on-chain settlement to boost both efficiency and transparency. The platform would also incorporate strong compliance tools, including Know Your Customer (KYC) and Anti-Money Laundering (AML) solutions, through partnerships with firms like Jumio and Chainalysis. Tokenized Real-World Assets Market Robinhood’s proposal comes at a time when interest in the RWA space continues to grow. The tokenized real-world asset (RWA) market could surge to $18.9 trillion by 2033, according to a recent report from Boston Consulting Group and Ripple. The forecast indicates a 53% compound annual growth rate, positioned between conservative and optimistic projections of $12 trillion and $23.4 trillion, respectively. Tokenization, which is essentially the use of blockchain to represent and transfer ownership of physical and financial assets like securities and property, continues to attract major institutional interest. JPMorgan’s Kinexys platform has already facilitated over $1.5 trillion in tokenized transactions, while BlackRock’s tokenized money market fund, BUIDL, also surpassed $1 billion AUM in March this year. The post Robinhood Calls on SEC to Modernize RWA Regulation in 42-Page Proposal appeared first on CryptoPotato .

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