Robinhood has faced backlash after launching tokenized stocks for OpenAI and SpaceX which do not represent real equity. OpenAI publicly distanced itself, stating that it was not involved in the launch, and that any equity transfer requires its approval. The tokenized stocks, meant to provide indirect exposure to private markets, are under scrutiny for lacking transparency and investor protections. Critics argue that these products are misleading financial instruments that do not track the actual value of OpenAI’s equity. Legal experts suggest that the SEC could view these tokens as securities, which would necessitate rigorous disclosure not currently provided by Robinhood. Furthermore, the design of the tokenized contracts has drawn criticism for its centralized nature, limiting interaction with decentralized finance (DeFi) protocols. Overall, while tokenization may present innovative opportunities, the response from OpenAI, regulatory uncertainties, and the opaque structure of these offerings raise significant concerns about their viability in the U.S. market.

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