Robinhood vs Do Kwon: The US SEC Clarifies Issues Related to Stock Tokens

According to CoinWorld, the U.S. Securities and Exchange Commission (SEC) has released a comprehensive framework for tokenized securities, categorizing them into issuer-initiated and third-party-initiated types, with the latter further divided into custodial and synthetic models. Meanwhile, Robinhood CEO Vlad Tenev is also advocating for the tokenization of the stock market to achieve real-time settlement and 24/7 trading. This announcement stands in stark contrast to the fate of Terra's Mirror Protocol, a synthetic securities platform whose collapse resulted in losses exceeding $40 billion, and whose founder Do Kwon was sentenced to 15 years in prison for fraud. Tenev urges legislators to pass the CLARITY Act to solidify regulatory progress.