Robinhood has submitted a detailed proposal to the US Securities and Exchange Commission (SEC), calling for the creation of a federal framework to regulate tokenized real-world assets (RWAs), which represent a potential $30 trillion market, Forbes reported on May 20.

The 42-page filing outlines a legal infrastructure that would allow digital tokens representing traditional financial instruments, such as equities, bonds, and real estate, to be treated as equivalent to the underlying assets.

The proposal aims to modernize how assets are issued, traded, and settled in the US by integrating blockchain-based mechanisms within existing securities law.

Unified framework

Robinhood’s proposal emphasizes that current approaches to RWA tokenization have remained largely fragmented, operating in isolated pilots and regulatory sandboxes despite staggering growth.

By contrast, the company is advocating for a unified national framework that would enable broker-dealers to issue and trade tokenized securities under a standardized compliance model, removing the need for parallel systems.

According to the report, the initiative includes plans for a new platform called the Real World Asset Exchange (RRE), which would feature off-chain trade matching paired with on-chain settlement.

The platform would incorporate know-your-customer (KYC) and anti-money-laundering (AML) tools provided by third-party providers such as Jumio and Chainalysis to ensure compliance with global regulatory standards.

If adopted, the framework could eliminate legal ambiguities surrounding asset ownership and reduce settlement times, while preserving investor protections under existing securities law.

Retail access to market infrastructure

Robinhood, widely known for its role in retail stock and crypto trading, is now positioning itself as a contributor to regulatory infrastructure to bring traditional finance on-chain.

Its filing argues that tokenized assets should not be classified as derivatives or synthetic instruments but recognized as direct representations of traditional financial products.

The report noted that the company is not proposing new blockchain technology, but rather legal interoperability to anchor tokenized finance to existing compliance standards.

Robinhood’s approach seeks to open the door for broader institutional adoption, offering a scalable path to onchain financial markets within the US legal system.

While the SEC has not yet responded to the proposal, Robinhood’s filing may serve as a test case for how regulators view asset-token equivalence. The success of the initiative will likely depend not only on regulatory reception but also on the ability to attract institutional participation and demonstrate utility at scale.

As of now, Robinhood’s submission represents one of the most structured efforts by a US-regulated broker to formalize the role of tokenized RWAs within mainstream finance.

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The Gibraltar government said it plans to establish the world’s first rules for liquidation and resolution of crypto derivatives, and create a regulatory framework to improve market integrity and reduce key risks.

In collaboration with the Gibraltar Financial Services Commisede (GFSC) and Crypto Exchange Bullish (the parent company of Coindesk), the government has over the past six months built a framework to coordinate traditional financial clearing regulations in the virtual asset market.

According to Bullish, the framework allows virtual asset derivative contracts to be cleared and resolved by a recognized clearing house.

Clearinghouse ensures that the transaction is completed as the buyer and seller meet their commitments. Many virtual asset exchanges perform their functions and without regulatory oversight could lead to failure in the process, bull said.

The proposed administration said it would allow for the establishment of separate clearing houses with “improvement of transparency and capitalization.”

Read more: UK’s first FCA-regulated Crypto derivative trading venue GFO-X debut

The House Financial Services and Agriculture Committee leaders published a discussion draft outlining a federal crypto framework to regulate the industry in the US on May 5.

House Financial Services Chairman French Hill (R-AR), Agriculture Committee Chairman Glenn “G.T.” Thompson (R-PA), Financial Services Subcommittee Chair on Digital Assets Bryan Steil (R-WI), and Agriculture Subcommittee Chair on Commodity Markets Dusty Johnson (R-SD) released the draft legislation. 

The lawmakers emphasized the bill’s role in coordinating regulatory responsibilities between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) while introducing legal definitions for key terms in blockchain and crypto markets.

Chairman Hill stated:

“The discussion draft builds upon the bipartisan, bicameral progress made in the 118th Congress and offers a durable framework to protect consumers while maintaining the United States’ leadership in digital innovation.”

He added that the committee intends to incorporate public feedback and work with the President Donald Trump administration to deliver a final bill for enactment.

Classifications for digital assets

The legislation introduces definitions for core industry concepts, including digital commodity, blockchain system, decentralized governance, permitted payment stablecoin, and mature blockchain system.

Additionally, it clarifies that distributions through mining, staking, or user rewards, termed “end user distributions,” are neither securities nor sales under existing laws.

Chairman Thompson emphasized the urgency of legislative clarity, noting that the proposed framework will close regulatory gaps and give developers and users the certainty they have long requested. 

The draft sets registration pathways for digital commodity exchanges, brokers, and dealers under the CFTC while allowing the SEC to retain jurisdiction over securities and certain hybrid assets. Entities performing custody functions, trading facilitation, or interfacing with customers must follow newly defined registration and disclosure procedures.

Subcommittee Chair Steil said:

“This is the beginning of the golden age of digital assets, and the House is leading the way.” 

Johnson echoed this view, stating the US must offer a commonsense regulatory regime to remain the global hub for crypto investment and innovation.

The draft preserves protections for DeFi protocols and self-custody. It excludes DeFi trading protocols and messaging systems from traditional financial regulations, provided they do not custody or exercise discretion over user funds. 

The bill also prohibits the Treasury or FinCEN from issuing rules restricting individuals’ ability to self-custody crypto through wallets.

Kickstarting the legislative process

The committees scheduled a joint hearing for May 6, titled “American Innovation and the Future of Digital Assets: A Blueprint for the 21st Century,” to begin formal legislative discussions and gather stakeholder input. 

The draft includes provisions for joint rulemaking by the SEC and CFTC, alongside studies on DeFi, non-fungible tokens (NFTs), and blockchain infrastructure through expanded innovation offices at federal agencies.

By establishing legal definitions and clear jurisdictional lines, the proposed bill seeks to end crypto regulation uncertainty in the US while encouraging responsible development and oversight of digital asset markets.

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Australia’s government is not currently considering a strategic crypto reserve, despite US President Donald Trump announcing the effort in the United States just days earlier.  

US President Donald Trump announced on March 2 that the President’s Working Group on Digital Assets was directed to include XRP (XRP), Solana (SOL), Cardano (ADA), Bitcoin (BTC) and Ether (ETH) in the crypto strategic reserve.

A swathe of other US states are also considering adding crypto to their balance sheets. 

However, it is understood the current ruling party has no plans to establish a crypto reserve. 

A spokesperson for Australian Assistant Treasurer and Financial Services Minister Stephen Jones told Cointelegraph that the government is focused on regulating digital asset platforms.

“The Albanese Government has consulted on our proposed framework to build a fit-for-purpose digital asset regulatory regime, and we continue to work closely with industry,” the spokesperson said. 

“The Albanese Government knows that blockchain and digital assets present big opportunities for our economy, our financial sector and innovation.”

A change of government could be on the horizon for Australia, however. Constitutionally, a new federal election must be held on or before May 17, and the latest YouGov poll shows the center-right coalition holding a slight lead over the center-left Labor government, leading 51% to 49%.

A spokesperson for the Coalition did not immediately respond to a request for comment.

Speaking to Cointelegraph, Tom Matthews, head of corporate affairs at Australian crypto exchange Swyftx, said that while the idea for a reserve is popular, it can also be “fraught with complexity,” and if not managed properly creates the potential for concentration risk with some tokens.

“If one of the main goals of your country’s strategic reserve is to hedge against crises, the price volatility of crypto is a problem. It is just difficult to see where the political traction is going to come from,” he said. 

Matthews speculates a more likely scenario is the emergence of a long-only sovereign wealth fund that holds crypto. 

Kraken’s managing director for Australia, Jonathon Miller, told Cointelegraph that crypto has already firmly established itself as an investment-grade asset, with ETFs on major exchanges, superannuation funds and sovereign wealth funds already invested for quite some time. 

“If it’s suitable for them, it’s certainly worth consideration for long-term asset allocators like the Future Fund and even Treasury,” he said. 

Related: Crypto voters could tip upcoming Australian federal election: YouGov poll

It comes as regulators in the country have flagged plans to shift focus toward the crypto industry. 

Australian Transaction Reports and Analysis Center CEO Brendan Thomas said in December last year the Anti-Money Laundering regulator was shifting its focus to the cryptocurrency industry in 2025 amid a crackdown on crypto ATM providers who might be flouting Anti-Money Laundering laws.

The Australian Securities and Investment Commission released a consultation paper on proposed guidance for crypto in December as well, placing many digital assets under the category of financial products and requiring firms dealing in crypto to be licensed.

The country has also emerged as a hub for Bitcoin and crypto ATMs, with coin ATM Radar data showing it has the third largest number worldwide at over 1,453 ATMs, up from 67 in August 2022. 

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