Robinhood’s crypto chief says the Securities and Exchange Commission’s innovation exemption could constrain its U.S. stock-token volume, even as the regulator proposes options for investment advisers and funds to custody crypto assets.
During an interview with The Block at Korea Blockchain Week 2026, Johann Kerbrat, Robinhood’s senior vice president and general manager of crypto and international, said that the company was still assessing the exemption’s trading limits.
“There are limitations on the volume and what type of assets we can tokenize. If you look at our volume on our stock tokens, it’s already pretty high and will hit some of its limits,” Kerbrat said.
SEC Exemption Sets Boundaries
On September 17, 2026, the SEC issued a five-year exemption for certain U.S. venues trading tokenized versions of listed stocks through automated market makers and liquidity pools. These systems use software and pooled assets to facilitate trades.
The relief exempts qualifying venues from the exchange definition and certain liquidity providers from dealer requirements. It expires five years after publication.
Conditions include limits on trading volume and the number of stock symbols. Tokens carry the same rights as the underlying shares. Venues should notify underlying issuers before offering stocks tokenized by unaffiliated third parties and give issuers an opportunity to object.
Smart tokens should be public and auditable, and token trading should stop when the underlying stock is halted on its primary exchange.
“Overall, I think what is really important from this signal with the exemption is that the SEC wants to work toward tokenization and understand the advantage of it,” Kerbrat said.
Robinhood’s Stock Tokens, issued as debt securities by a Jersey-based entity, are available in more than 120 countries through Robinhood Wallet but are unavailable to U.S. users, The Block reported. However, Kerbrat’s comments highlight potential hurdles should the company seek to expand the offering into the U.S. under the SEC’s new framework.
On September 14, 2026, Kerbrat and Robinhood CEO Vlad Tenev said they plan to add voting rights and redemption to underlying shares, CoinDesk reported.
Separate Crypto-Custody Proposal
The concerns come alongside a separate SEC proposal announced on October 1, 2026, which offers new rules and amendments to provide a tailored framework for the custody of crypto assets for registered investment advisers and regulated funds. These include registered investment companies and business development companies.
The proposal modernizes custody rules so advisers can offer crypto-related advice without regulatory barriers. It also lets regulated funds offer clients a broader range of crypto investment strategies.
“Today’s proposal would provide a clear regulatory framework for the custody of crypto assets, giving investment advisers and funds a compliant pathway where none existed before—and replacing the grey of uncertainty created by custody rules crafted for a bygone era,” said SEC Chairman Paul S. Atkins in a statement.
Self-custody would carry conditions. Advisers would need to document that a permitted custodian was unavailable, reassess that determination quarterly, and meet safeguarding requirements. Regulated funds would also require board oversight.
The proposal remains subject to consultation, with comments due 60 days after publication in the Federal Register.
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