The U.S. Securities and Exchange Commission’s (SEC) Crypto Task Force met on September 2 with senior representatives from Robinhood Markets, Inc., its crypto and brokerage affiliates, and outside counsel from Simpson Thacher & Bartlett LLP.
The focus of the discussion was Robinhood’s provision of crypto asset-related services and the growing debate around tokenizing traditional securities.
Robinhood’s delegation, which included General Counsel Lucas Moskowitz, Deputy General Counsel John Markle, Robinhood Crypto chief Johann Kerbrat, and brokerage head Matt Billings, presented an agenda that drilled into the regulatory rules that affect crypto services.
Among them were Rule 15c2-11, Rule 15c3-1, and Rule 15c3-3 under the Securities Exchange Act of 1934—provisions originally crafted for traditional securities but now being tested against digital assets.
One of the main topics was tokenizing securities, whether private, over-the-counter, or exchange-listed. Robinhood and SEC staff talked about how these could be turned into tokens and the regulatory hurdles that would come with it.
They noted that rules such as Regulation NMS, Regulation M, and Regulation SHO would play a big role in shaping how tokenized products might reach investors.
A Broader Regulatory Push
The Robinhood meeting comes amid a wave of similar SEC engagements with other crypto stakeholders. On August 27, the task force hosted the Blockchain Association, Multicoin Capital, Blockchain Capital, and Sullivan & Cromwell LLP. That session focused on custody rules for registered investment advisers, with critics warning that requirements built for traditional securities don’t fit digital asset realities.
Earlier in the summer, SEC officials met twice with executives from Kraken’s parent company, Payward Inc., and its counsel at WilmerHale. Those discussions highlighted tokenization and staking models, with the second meeting on August 25 zeroing in on the mechanics of tokenized trading platforms.
Industry at a Turning Point
For Robinhood, which straddles retail brokerage and digital assets, the September 2 meeting underscored the firm’s intent to remain a key player in shaping regulatory dialogue. As the SEC continues its series of talks, tokenization and custody rules appear to be at the heart of how the U.S. will regulate crypto in the years ahead.