Robinhood Crypto Calls for SEC to Modernize Investor Accreditation, Aiming to Broaden Access to Tokenization
Robinhood Crypto’s Senior VP and General Manager, Johann Kerbrat, is urging the U.S. Securities and Exchange Commission (SEC) to modernize investor accreditation rules to fully unlock the benefits of tokenization. Currently, only wealthy individuals meeting certain income thresholds can invest in tokenized assets and early-stage startups, which Kerbrat argues significantly restricts mainstream adoption and market participation. He suggests moving from income-based qualifications to an education-focused system, incorporating knowledge tests and self-certification, to democratize access. This would enable broader involvement in digital securities, blockchain-based fundraising, and tokenized real-world assets (RWAs), reducing founder dilution caused by traditional IPO intermediaries. Robinhood has officially submitted these recommendations to the SEC, emphasizing that outdated regulations—not technological obstacles—are stifling innovation in the crypto and tokenization space. The proposed changes could enhance market efficiency, liquidity, and transparency, benefiting both startups and retail investors. The development highlights the ongoing tension between innovation and investor protection in U.S. crypto regulation, and signals expanding support for regulatory reform as blockchain adoption grows.
Bullish
Kerbrat’s call for modernizing investor accreditation rules could pave the way for increased retail participation in tokenized assets and blockchain-based securities. Allowing more investors to access early-stage startup investments and digital asset offerings would likely drive greater demand and liquidity within the crypto sector. By shifting from income-based to education-based qualifications, market access would expand, potentially accelerating capital formation and adoption of blockchain technology. Historically, regulatory reforms enabling broader participation have been associated with positive sentiment and growth in crypto utilization and trading volumes. While immediate price impact may be limited due to regulatory timelines, the long-term outlook is bullish as these changes would foster innovation, inclusivity, and broader market engagement.