PANews, October 28 — According to Cointelegraph, Robinhood CEO Vlad Tenev said during the company’s third-quarter earnings call that the SEC’s innovation exemption is a positive step, but uncertainty around U.S. tokenization rules could deter investors from committing significant assets. Further rulemaking or legislation is still needed to provide long-term regulatory certainty. He said customers are uncertain about what the rules will look like five years from now, which could make them reluctant to commit significant assets to tokenized markets.

Tenev also said that Robinhood plans to launch tokens representing shares in private companies overseas, depending on regulatory arrangements. In the U.S., the company is seeking a way to comply with current restrictions on accredited investors. About 200 stock tokens are available on Robinhood Chain. They are backed by underlying stocks but structured as tokenized debt securities, providing economic exposure without the shareholder rights of traditional stocks, and therefore are not covered by the SEC’s innovation exemption.

Previously reported, Robinhood's third-quarter crypto revenue fell 55% year over year to $120 million, while crypto notional trading volume declined 38% to $50 billion. Prediction market revenue increased sixfold to $173 million.