Current American regulations block a major financial change that could open investments in the private market for everyday investors through tokenization, said CEO of digital brokerage Robinhood Vlad Tenev.
In an article of Wednesday opinion for the Washington Post, Tenev said that many high -growing companies such as Openai, Spacex and Stripe are avoiding more and more public, limiting investment access to a small circle of Rich investors, expanding the investment gap between retail investors.
The tokenization of investment capital through blockchain technology that underlies cryptographic markets would allow details to access companies at the start of their growth phase, reducing barriers while keeping appropriate disclosure and protections Investors, said Tenev.
“The world is token and the United States should not be left behind,” wrote Tenev. “It’s time to update our conversation on Bitcoin crypto and even corners to what the blockchain really makes it possible: a new era of ultra-inclusive and customizable investment adjusted for this century.”
However, American regulators, in particular the Securities and Exchange Commission (SEC), have not yet provided a clear framework and rules for the recording of security tokens, while other key markets such as the EU , Singapore and Abu Dhabi are already advancing in this area, he says.
He proposed to create a security token registration framework as an alternative to IPOs, providing clear directives for exchanges and brokers to take charge of token assets and update the rules of accredited investors to allow a Access based on financial knowledge instead of wealth.
Tokenization is a booming sector at the intersection of crypto and traditional finances which could become a market of several dollars this decade, by forecasts of McKinsey, BCG, 21Shares and Bernstein. Institutions and even governments are exploring more and more investment of real assets such as obligations, funds and basic products and real estate on blockchain rails in the form of a digital token to reach faster establishments and accessibility wider of investors.
Tenev is the last high -level leader in the financial world praising tokenization and calling for clear rules for token titles. Larry Fink, CEO of the Directors Director of 10 Billions of Dollars, BlackRock, recently said that tokenization is the next border that will change the markets and urged the dry in a CNBC interview to “quickly approve” the tokenization of actions and Obligations.
