Robinhood Proposes Federal Framework for RWA Tokens to US SEC

American financial services company Robinhood has submitted a proposal to the United States Securities and Exchange Commission (SEC) to create the world’s first federal regulatory framework for tokenizing Real-World Assets (RWA). This latest move highlights Robinhood’s plan to make RWA a key feature of its new platform.

According to a Forbes report, the latest proposal seeks to replace the existing fragmented state-by-state compliance model with a reliable federal framework. The plan also wants tokens for assets like stocks and government bonds to be legally recognized as equivalent to their underlying assets. This way, it diversifies from classifications as derivatives or synthetic products.

Robinhood Proposes Regulatory Framework

If approved, the framework would eliminate redundant operational systems and resolve ambiguities in ownership rights. Furthermore, it would authorize broker-dealers like Robinhood to custody and trade tokenized assets under the current regulations to avoid uncertain structures.

Commenting on the proposal, crypto expert and founder of Quantum Economics, Mati Greenspan, said:

“This proposal could mark the first time a U.S.-regulated broker has laid out a viable path for bringing trillions of dollars in assets onchain—without compromising regulatory integrity. If the SEC embraces this, it’s a signal to the world that tokenization has a legitimate seat at the traditional finance table.”

By aiming for asset-token equivalence and regulatory harmony, the company is laying the groundwork for a framework that could be adopted by startups, DeFi projects, banks, hedge funds, and asset managers alike. Notably, the Real World Asset Exchange (RRE) platform employs off-chain matching to optimize transaction speed and on-chain settlement to ensure transparency. It also uses identity and anti-money-laundering checks to meet global KYC and AML standards.

A 24-Hour Tokenized Assets Access

Robinhood’s RRE promises everyday access to tokenized assets spanning the full range of global capital markets—from funds and bonds to commodities and real estate. Furthermore, the move represents a pivotal shift for Robinhood. It is now transforming from a mobile brokerage platform into a prospective regulatory blueprint creator.

Simultaneously, it paves the way for a diversified revenue model based on trading, custody, and compliance in tokenized markets, departing from the earlier spread-based retail approach.</span>

According to the report, the proposal integrates innovative solutions with institutional risk management. This addresses a long-standing challenge within the crypto industry. However, the SEC has yet to respond.