Robinhood Pushes Crypto Stocks Despite Backlash

Robinhood CEO Vlad Tenev has officially acknowledged that launching OpenAI stock tokens is a controversial move. However, he remains confident that this marks a major milestone in opening up new investment opportunities in private companies via blockchain.

"Becoming the first to tokenize major companies is a significant achievement." – Vlad Tenev

The token was launched on the Ethereum layer-2 network Arbitrum, primarily distributed to European users via airdrop.

Crypto Stocks: Robinhood Sparks Controversy

1. OpenAI Objects – SEC Issues Warning

Soon after Robinhood’s announcement, OpenAI strongly objected, stating that it had never authorized the use of its name or valuation to issue tokens.

Meanwhile, the U.S. Securities and Exchange Commission (SEC) promptly issued a warning:

"Tokenizing securities does not change their nature. Blockchain cannot override the legal status of assets." – SEC Commissioner Hester Peirce

2. What Is Stock Tokenization?

The stock tokens issued by Robinhood do not grant ownership or voting rights – they merely simulate the secondary market valuation of companies like OpenAI and SpaceX. This raises several concerns regarding:

•  - Legal status of blockchain-based financial assets

•  - Real investor rights

•  - Legal accountability of the issuing platform

3. Robinhood Stands Firm – Plans For Thousands Of Companies

Despite mounting criticism, Vlad Tenev continues to strongly endorse the plan to tokenize thousands of other private companies in the future. He calls this an early move toward "DeFi 2.0 and 3.0."

"We’re not focused on public opinion, but on getting real products into the hands of users."

4. Conclusion

Robinhood is pioneering the tokenization of private equity, yet it faces significant legal and ethical challenges. If successful, the initiative could usher in a new era of off-exchange investing via blockchain. However, warnings from the SEC and opposition from companies like OpenAI make it clear: the road ahead will be anything but smooth.