The current regulations of the United States are blocking an important financial change that could open private market investments to everyday investors through tokenization, said the CEO of the digital broker Robinhood Vlad Tenev.
In an opinion article on Wednesday for The Washington Post, Tenev said that many high -growth companies such as Openai, Spacex and Stripe are increasingly avoiding public, limiting access to investment to a small circle of rich investors, expanding the Investment gap among retail investors.
The tokenization of private capital through blockchain technology that supports cryptography markets would allow retail trade to access companies at the beginning of their growth phase, reducing barriers while maintaining adequate revelations and investor protections, Tenev argued .
“The world is playing, and the United States should not be left behind,” Tenev wrote. “It’s time to update our conversation about Bitcoin coins cryptography and meme to what Blockchain is really making possible: a new era of ultra inclusive and customizable investment for this century.”
However, Us Regulators, individually the securities and exchange commission (sec), have yet to Clear Framework and Rules for Registering Security Tokens, While Oher Key Markets Such As The Eu, Singapore and Abu Dhabi Are Already Advancing in This Area, saying.
He proposed to create a security token registration frame as an alternative to the OPI, providing clear guidelines for exchanges and stockbrokers to support tokenized assets and update the rules of investors accredited to allow access based on financial knowledge instead of the wealth.
Tokenization is a booming sector at the intersection of traditional cryptography and finances that could become a multimillionaire market this decade, according to McKinsey, BCG, 21Shares and Bernstein forecasts. Institutions and even governments are increasingly exploring real -world assets such as bonds, funds and real estate in Blockchain rails in a digital token form to achieve faster settlements and broader accessibility for investors.
Tenev is the last high profile leader in the financial world promoting tokenization and asks for clear rules for tokenized values. Larry Fink, CEO of the $ 10 billion asset manager, Blackrock, recently said that tokenization is the next border that will change the markets and urged the SEC in a CNBC interview to “quickly approve” the tokenization of shares and bonds.
