Blab Crypto
Robinhood CEO Calls for Federal Crypto Rules Amid State Crackdowns on Prediction Markets
In the midst of a legal maelstrom, Robinhood’s chief executive Vlad Tenev has stepped forward, urging Washington to lock in permanent rules for digital‑asset products. His plea follows a barrage of state‑level lawsuits that have targeted the company’s burgeoning prediction‑market platform.
Tenev’s comments come after Robinhood posted a strong second‑quarter 2026 performance, reporting $1.3 billion in revenue, of which $776 million came from transaction‑based services. A significant portion of that figure—$156 million—was driven by the prediction‑market business. The surge in betting on real‑world events, from elections to sports and award shows, has been a hallmark of the 2024 U.S. election cycle. Platforms such as Robinhood, Polymarket and Kalshi posted record volumes, yet several states moved quickly to clamp down on them.
Connecticut, for example, ordered Robinhood, Kalshi and Crypto.com to cease offering certain event contracts, labeling them unlicensed sports betting. Nevada filed a civil enforcement action against Polymarket, while Florida opened an investigation into Robinhood Crypto over claims that it offered the “least expensive” way to buy digital assets. According to Tenev, state regulators are driven by a clear financial motive: “There’s a huge financial incentive,” he said, noting that state gambling operators fear losing tax dollars from their own lotteries and licensed gambling operations.
The tension between federal agencies and state governments is palpable. On the federal side, the Securities and Exchange Commission closed its probe into Robinhood’s crypto unit without enforcement action. The CFTC’s Chairman Paul Atkins launched Project Crypto, a push to modernize rules for on‑chain assets, and the agency has issued guidance that could allow brokers to handle both Bitcoin and stocks under one license. Yet, without a comprehensive federal framework, products such as tokenized stocks and staking remain in a gray area. Robinhood can offer staking only in a subset of states, even though customer demand stays high.
Tokenization sits at the core of Robinhood’s strategy. The firm’s Stock Tokens grant holders economic exposure to U.S. equities, paying dividends but offering no voting rights. As of early September 2026, the company had traded tokenized stocks worth $103 million across 189 assets. However, issuer consent continues to be a sticking point. AMC Entertainment’s CEO demanded that Robinhood halt AMC‑linked tokens, a request the brokerage refused, spotlighting unresolved questions about issuer approval and third‑party tokenization.
On the international front, Robinhood Wallet enables users in more than 120 countries to trade tokenized stocks around the clock with real‑time settlement. European customers can access fractional U.S. equities, while many of those same products remain unavailable to Americans. Tenev has warned that the U.S. could lag behind if other jurisdictions adopt more permissive frameworks. The EU, Singapore and Abu Dhabi already have advanced token‑registration regimes.
Industry peers have echoed Tenev’s call for clarity. Coinbase withdrew support for a market‑structure bill earlier this year over specific provisions, stalling Senate progress. Tenev reaffirmed Robinhood’s backing of a stable‑coin‑friendly framework and highlighted the 2025 GENIUS Act as a first major federal step. Analysts note that while payment‑for‑order‑flow and token classification remain under scrutiny, the trajectory points toward an integration of crypto and traditional assets in unified accounts.
Regulatory uncertainty persists. State actions continue to restrict product availability, while federal agencies issue guidance that has yet to become law. A potential Supreme Court ruling on whether states can regulate prediction markets as gambling could reshape the industry’s future. Until permanent rules are enacted, platforms like Robinhood will likely keep navigating a patchwork of state and federal requirements, balancing innovation with compliance.
In sum, Tenev’s appeal underscores the urgency of a clear, stable regulatory framework for digital‑asset products in the United States—a framework that will shape the industry’s trajectory as it competes on a global stage.
Tenev’s comments come after Robinhood posted a strong second‑quarter 2026 performance, reporting $1.3 billion in revenue, of which $776 million came from transaction‑based services. A significant portion of that figure—$156 million—was driven by the prediction‑market business. The surge in betting on real‑world events, from elections to sports and award shows, has been a hallmark of the 2024 U.S. election cycle. Platforms such as Robinhood, Polymarket and Kalshi posted record volumes, yet several states moved quickly to clamp down on them.
Connecticut, for example, ordered Robinhood, Kalshi and Crypto.com to cease offering certain event contracts, labeling them unlicensed sports betting. Nevada filed a civil enforcement action against Polymarket, while Florida opened an investigation into Robinhood Crypto over claims that it offered the “least expensive” way to buy digital assets. According to Tenev, state regulators are driven by a clear financial motive: “There’s a huge financial incentive,” he said, noting that state gambling operators fear losing tax dollars from their own lotteries and licensed gambling operations.
The tension between federal agencies and state governments is palpable. On the federal side, the Securities and Exchange Commission closed its probe into Robinhood’s crypto unit without enforcement action. The CFTC’s Chairman Paul Atkins launched Project Crypto, a push to modernize rules for on‑chain assets, and the agency has issued guidance that could allow brokers to handle both Bitcoin and stocks under one license. Yet, without a comprehensive federal framework, products such as tokenized stocks and staking remain in a gray area. Robinhood can offer staking only in a subset of states, even though customer demand stays high.
Tokenization sits at the core of Robinhood’s strategy. The firm’s Stock Tokens grant holders economic exposure to U.S. equities, paying dividends but offering no voting rights. As of early September 2026, the company had traded tokenized stocks worth $103 million across 189 assets. However, issuer consent continues to be a sticking point. AMC Entertainment’s CEO demanded that Robinhood halt AMC‑linked tokens, a request the brokerage refused, spotlighting unresolved questions about issuer approval and third‑party tokenization.
On the international front, Robinhood Wallet enables users in more than 120 countries to trade tokenized stocks around the clock with real‑time settlement. European customers can access fractional U.S. equities, while many of those same products remain unavailable to Americans. Tenev has warned that the U.S. could lag behind if other jurisdictions adopt more permissive frameworks. The EU, Singapore and Abu Dhabi already have advanced token‑registration regimes.
Industry peers have echoed Tenev’s call for clarity. Coinbase withdrew support for a market‑structure bill earlier this year over specific provisions, stalling Senate progress. Tenev reaffirmed Robinhood’s backing of a stable‑coin‑friendly framework and highlighted the 2025 GENIUS Act as a first major federal step. Analysts note that while payment‑for‑order‑flow and token classification remain under scrutiny, the trajectory points toward an integration of crypto and traditional assets in unified accounts.
Regulatory uncertainty persists. State actions continue to restrict product availability, while federal agencies issue guidance that has yet to become law. A potential Supreme Court ruling on whether states can regulate prediction markets as gambling could reshape the industry’s future. Until permanent rules are enacted, platforms like Robinhood will likely keep navigating a patchwork of state and federal requirements, balancing innovation with compliance.
In sum, Tenev’s appeal underscores the urgency of a clear, stable regulatory framework for digital‑asset products in the United States—a framework that will shape the industry’s trajectory as it competes on a global stage.
