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Robinhood CEO confirms regulatory talks over tokenized equities
Investing.com -- Robinhood Markets Inc (NASDAQ:HOOD). is in discussions with regulators regarding its tokenized equities offering in Europe, CEO Vlad Tenev said after the launch drew criticism from companies like OpenAI.
The California-based company recently announced that retail investors using its app in the European Union could trade tokens representing shares of US equities on blockchain. The launch included a token giveaway for private companies such as OpenAI, which later warned traders that these tokens do not represent actual equity in the company.
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Learn More Powered by Money.com - Yahoo may earn commission from the links above. "They have some questions," Tenev told Bloomberg Television, referring to the Bank of Lithuania, which oversees Robinhood’s EU operations. "They want to make sure that everything is proper because it’s a new innovative offering. We’re confident. We think that these are not only important, but they’ll withstand the highest form of scrutiny."
On Monday, the Bank of Lithuania told CNBC it had requested clarification from Robinhood about the token structure.
Tenev noted that tokens representing private stocks like OpenAI and SpaceX are not yet available for trading. For these non-publicly traded companies, Robinhood values the businesses using its own internal methodology, according to a legal notice about the promotion.
The CEO expressed hope to expand tokenized equities to other markets including the US and UK, pending regulatory approval.
"For tokenization in the US, we do believe that the SEC has the authority to make it happen without legislation," Tenev added. "The US shouldn’t be far behind."
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