Last Updated: January 2025

Crypto

There is continued uncertainty about how digital assets should be regulated in the U.S. Robinhood believes that policymakers and regulators should provide market participants with clarity around the regulation of digital assets in a manner that allows innovation to flourish.

Key points

Key Points:

  • The absence of clear regulatory guidance for crypto assets creates uncertainty for developers and businesses, stifling innovation and investment in the sector. It also limits consumer participation in opportunities like staking, leaving individuals with fewer safe and reliable ways to engage with the evolving digital economy.

  • Robinhood is committed to complying with all applicable state and federal regulations and continues to collaborate with regulators and policymakers to establish a clear path forward.

What we’ve seen

Digital asset market participants in the U.S., including Robinhood, are currently navigating a fragmented and challenging regulatory landscape. This environment is marked by inconsistent state regulations and a lack of federal clarity, creating barriers to broader adoption of digital asset products in the U.S.

Today, it remains unclear which digital assets are considered securities versus commodities by the SEC and CFTC, and there is no clear path to registration for token issuers and crypto platforms under the federal securities laws. The lack of federal regulatory clarity has created an uneven playing field for market participants, hindering the broader adoption of digital asset products and services in the U.S. Robinhood is committed to helping advance a more transparent and tailored regulatory environment for digital assets.

What we’re doing

Robinhood disagrees with the argument that transactions in most digital assets are subject to the federal securities laws. While Congress works on passing comprehensive legislation, however, the SEC must provide firms with immediate clarity and a straightforward path to registration should the agency consider certain types of transactions in specific tokens to be securities transactions. In the absence of immediate legislative action, the SEC can use its authority under Section 36 of the Securities Exchange Act to implement a provisional structure that allows crypto firms to register and operate with clear expectations. As our Chief Legal, Compliance, and Corporate Affairs Officer Dan Gallagher highlighted in his congressional testimony, this approach would establish essential guidelines—such as registration, custody, record-keeping, consumer protection, and reporting requirements—reducing the regulatory ambiguity currently facing the industry. The implementation of a tailored, transparent registration process can provide much-needed clarity and stability, while fostering innovation.

Robinhood’s position

While a temporary SEC framework would provide immediate relief and clarity, only Congress can establish a comprehensive, tailored, and enduring regulatory structure for digital assets. Robinhood supports ongoing legislative efforts, such as the draft bills from the House Financial Services and Agriculture Committees, which aim to define a clear, balanced framework that encourages growth and safeguards investor protections. A dual approach—a provisional SEC framework paired with permanent Congressional legislation—would provide a balanced solution. This approach would safeguard investors, support U.S. competitiveness, and allow for responsible growth in digital assets, ensuring that innovation in crypto can continue to develop under a clear and fair regulatory framework. Learn more about Crypto at Robinhood here.

The promise of Tokenization

Tokenization has the potential to transform financial markets by converting real-world assets (RWAs), such as stocks, ETFs, or other assets, into digital tokens that can be traded on blockchain-based platforms. Tokenization introduces a wide range of benefits, including streamlined settlement, lower frictional costs, fractionalization, 24/7 trading, and, if coupled with reforms such as expanding the “accredited investor” definition, the ability to open private markets to retail investors.Despite these clear benefits, the lack of regulatory clarity in the U.S. hinders tokenization’s broader adoption. There continues to be uncertainty around the registration, secondary trading, and custody of tokenized assets, as well as ambiguities in asset classification. A cohesive, transparent framework would allow the U.S. to responsibly unlock tokenization’s potential, enabling innovation to flourish while maintaining robust investor protections. To learn more about our vision for unlocking tokenization’s potential, read here.

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Resources

Tokenization

Vlad Tenev, The Washington Post; January 2025An Investing Revolution Is Coming. The U.S. Isn’t Ready for It

Expanding Crypto Accessibility

Robinhood Blog; January 2022Crypto Wallets Beta Program is Here
Robinhood Blog; December 2021WenWallets? Goodbye Alpha, Hello Beta
Robinhood Blog; September 2021Crypto Recurring Investments Are Here
Robinhood Blog; September 2021Crypto Wallets Are Coming to Robinhood

All investments involve risk and loss of principal is possible.

Commission-free trading of stocks, ETFs, and their options are offered through Robinhood Financial LLC (“RHF”), a registered broker dealer (member SIPC). Other fees may apply. See RHF's Fee Schedule. Fractional shares are illiquid outside of Robinhood and are not transferable. See the Fractional Shares section of our Customer Agreement. IPOs can be risky and speculative investments and may not be appropriate for every investor. Clearing services are offered through Robinhood Securities, LLC (“RHS”), a registered broker dealer (member SIPC).

Futures, options on futures and cleared swaps trading is offered by Robinhood Derivatives, LLC ("RHD"), a registered futures commission merchant with the Commodity Futures Trading Commission (CFTC) and Member of National Futures Association (NFA). Futures, options on futures and cleared swaps trading involves significant risk and is not appropriate for everyone. Please carefully consider if it's appropriate for you in light of your personal financial circumstances. Please read the Futures Risk Disclosure Statement prior to trading futures products, and please read the Forecast Contract Risk Disclosure for more information about the risks associated with forecast event contracts. RHD accounts are not protected by the Securities Investor Protection Corporation (SIPC) and are not Federal Deposit Insurance Corporation (FDIC) insured. RHD is not a bank. Prior to trading virtual currency Futures products, please review the NFA Investor Advisory & CFTC Advisory providing more information on these potentially significant risks.

Cryptocurrency services are offered through Robinhood Crypto, LLC (“RHC”) (NMLS ID: 1702840).

The Robinhood Money spending account is offered through Robinhood Money, LLC (“RHY”) (NMLS ID: 1990968), a licensed money transmitter. Robinhood Gold Card is subject to credit approval and underwriting. Robinhood Gold Card is offered by Robinhood Credit, Inc. and is issued by Coastal Community Bank, pursuant to a license from Visa U.S.A. Inc. Robinhood Credit, Inc. ("RCT"), is a financial technology company, not a bank.

RHF, RHS, RHD, RHC, RHY, and RCT are affiliated entities and wholly-owned subsidiaries of Robinhood Markets, Inc.

RO 4180815

Robinhood, 85 Willow Road, Menlo Park, CA 94025. © 2025 Robinhood. All rights reserved.
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All investments involve risk and loss of principal is possible.

Commission-free trading of stocks, ETFs, and their options are offered through Robinhood Financial LLC (“RHF”), a registered broker dealer (member SIPC). Other fees may apply. See RHF's Fee Schedule. Fractional shares are illiquid outside of Robinhood and are not transferable. See the Fractional Shares section of our Customer Agreement. IPOs can be risky and speculative investments and may not be appropriate for every investor. Clearing services are offered through Robinhood Securities, LLC (“RHS”), a registered broker dealer (member SIPC).

Futures, options on futures and cleared swaps trading is offered by Robinhood Derivatives, LLC ("RHD"), a registered futures commission merchant with the Commodity Futures Trading Commission (CFTC) and Member of National Futures Association (NFA). Futures, options on futures and cleared swaps trading involves significant risk and is not appropriate for everyone. Please carefully consider if it's appropriate for you in light of your personal financial circumstances. Please read the Futures Risk Disclosure Statement prior to trading futures products, and please read the Forecast Contract Risk Disclosure for more information about the risks associated with forecast event contracts. RHD accounts are not protected by the Securities Investor Protection Corporation (SIPC) and are not Federal Deposit Insurance Corporation (FDIC) insured. RHD is not a bank. Prior to trading virtual currency Futures products, please review the NFA Investor Advisory & CFTC Advisory providing more information on these potentially significant risks.

Cryptocurrency services are offered through Robinhood Crypto, LLC (“RHC”) (NMLS ID: 1702840).

The Robinhood Money spending account is offered through Robinhood Money, LLC (“RHY”) (NMLS ID: 1990968), a licensed money transmitter. Robinhood Gold Card is subject to credit approval and underwriting. Robinhood Gold Card is offered by Robinhood Credit, Inc. and is issued by Coastal Community Bank, pursuant to a license from Visa U.S.A. Inc. Robinhood Credit, Inc. ("RCT"), is a financial technology company, not a bank.

RHF, RHS, RHD, RHC, RHY, and RCT are affiliated entities and wholly-owned subsidiaries of Robinhood Markets, Inc.

RO 4180815

Robinhood, 85 Willow Road, Menlo Park, CA 94025. © 2025 Robinhood. All rights reserved.