To Reap Tokenization’s Benefits, Accredited Investor Rules Should Be Revamped: Robinhood Crypto GM

In order to use one of tokenizationTrue benefits, the requirements for accreditation of investors should be renovated to strengthen daily investors with multiple freedom, according to Johann Kerbrat, Senior Vice President and CEO Robinhood Crypto.

In a recent interview for DecipherKerbrat said Blockchains could one day be used to help the founders of starting capital in a transparent way that helps them preserve control. However, according to current rules in the United States, 90% of the population could not participate – because they, for example, do not make more than $ 200,000 a year.

Usually, as the company goes from a passionate project to a public trading company, risk capitalists and private capital companies help raise funds along the way. When it comes to including the stock market, investment banks also play a significant role, transcribing the offer, and as Kerbrat described it, commanding a “huge banking fee”.

According to Kerbrat, the founder risks the loss of control of the dilution of the part, among other factors, because intermediaries expand their services on the company’s path to the possible IPO. On top of all, places like hope often charge their own exchange fee, he added.

“These steps are just mediators who take over the company, not necessarily create a value for your customer, for your employee base or something like that,” he said. “We could, with tokenization, bring a new world to raise funds, where instead of launching a new coin, you could start a new offer for your startup and raise funds on the chain.”

With a regulatory background that supports innovation more, Kerbrat said Robinhood is in a good position to help the founders of launching the bypass of Middlemen, using his “huge retail platform” along with his relationships on the institutional side with the market manufacturers.

Instead of based investors based on factors such as their salary, Kerbrat claimed that “the control point should be education” and whether investors are aware that an early stage investment convey risk.

In April Kerbrat endured a letter The Securities Commission recommends that there are tests based on knowledge and components of self-certification for accreditation.

“A new regulatory approach is required to allow tokenization to flourish, and this system should be designed at a federal level to ensure the market consistent,” the letter said.

Whether it is supplies, bonds or real estate, tokenization can refer to any property presented to the chain token. Last month, Crypto Exchange Kraken said To start offering users in Europe the ability to trade stock with a list of US using Saltworks.

Proponents of tokenization, including the executive director of Black Larry Fink, focused on benefits outside the potential democratization of the market. When he Supported tokenization 2022His focus was on greater market efficiency and settlement, which is almost current.

“I think there is a lot of advantages, but right now, what blocks us from this world is a lot [outdated] Rules, “Kerbrat said, emphasizing that technology is not what retains tokenization.

Edited by James Rubin