Robinhood Has Submitted a Proposal to SEC, Calling for a Legal Framework for Tokenized Real-World Assets (RWA), Paving the Way for US Securities to Operate on Blockchain.
Robinhood has just submitted a detailed proposal to the United States Securities and Exchange Commission (SEC), calling for the establishment of a unified legal framework for tokenized real-world assets (RWAs). If approved, this proposal could lay the foundation for a US stock market operating on blockchain and fully complying with existing laws.
According to a report from Forbes, Robinhood's 42-page Real World Asset Exchange (RRE) proposal provides a comprehensive design for legally implementing tokenization at a large scale. This is seen as a bold move to integrate blockchain into the traditional financial system, targeting a market projected to reach $30 trillion by 2030.
From Fragmented Regulations to National Standards
The focus of the proposal is to transition from a fragmented state-by-state regulatory system to a national standard, where tokens are considered legally equivalent to underlying assets such as stocks or bonds – rather than synthetic derivative instruments.
The RRE platform is designed to combine off-chain order matching with on-chain transaction settlement. This is a hybrid model between traditional and blockchain systems, aiming to leverage the advantages of both platforms. The system integrates KYC/AML compliance through partners like Jumio and Chainalysis, ensuring identity verification and anti-money laundering requirements.
If approved, this legal framework could allow brokers to trade tokenized assets within the existing legal infrastructure, which is particularly important for financial institutions that have been cautious about the legal gray areas of this field.
Although the SEC's response remains unclear, Robinhood's move could become a catalyst for widespread adoption of tokenized finance by providing legal clarity – a factor the market has long been lacking.
Whether this proposal is accepted as a new regulatory standard or simply sparks a broader dialogue, Robinhood is positioning itself as a pioneer in the era of tokenized real-world asset finance.
