Robinhood’s tokenized stock volume testing SEC exemption limits

The SEC’s September 17 framework establishes two distinct tiers for tokenized National Market System stocks. Tier 1, which includes S&P 500 and Russell 1000 assets, limits venues to 0.25% of the underlying stock’s average daily volume, while Tier 2 allows up to 2.5%. Should a venue repeatedly breach these thresholds, it faces a mandatory three-month suspension of trading for the affected product. With Robinhood’s tokenized volume reaching $1 billion in August via Uniswap, Kerbrat acknowledged that these constraints are becoming a pressing operational reality.

To align with SEC requirements, which mandate that tokenized shares mirror the rights and privileges of conventional equity, Robinhood is preparing to integrate voting rights and in-kind redemption. These updates arrive following public friction with AMC Entertainment CEO Adam Aron regarding tokenized exposure. Beyond equities, the company is diversifying its on-chain portfolio by preparing U.S. perpetual futures for eight cryptocurrencies, including Bitcoin and Ether. These contracts will feature leverage of up to 10x, with the company opting for a continuous funding rate calculation to differentiate its clearing system from existing market competitors.