Robinhood says stock token volume may hit SEC exemption caps
Robinhood warned that trading volumes for its stock tokens could hit limits set by the U.S. Securities and Exchange Commission's five-year innovation exemption, which imposes caps on the number of symbols and trading volume and requires tokens to carry the same rights as underlying shares. Robinhood's tokens are issued as debt securities by a Jersey entity and are available in more than 120 countries but not to U.S. users. The firm plans in-kind redemption and voting rights for tokens, defended its legal structure against AMC's criticism, and will launch U.S. crypto perpetual futures for eight tokens with up to 10x leverage.
Robinhood's stock token volumes may exceed SEC exemption limits.
Context
The SEC issued a five-year exemption on tokenized U.S. stocks on Sept. 17. Robinhood…
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