[Galaxy: SEC’s New Rules Impose Limits on Third-Party Tokenized Stocks; Robinhood’s Current Model Does Not Meet Requirements] According to Jinsecai, on September 20, Alex Thorn, Research Director at Galaxy Research, stated that while the SEC’s latest exemption for tokenized securities permits third-party tokenized stocks, its scope is narrower than what the current market refers to as “third-party tokenization.” Eligible tokens must represent actual NMS stocks and grant holders full legal, economic, and governance rights; instruments such as notes, swaps, SPV interests, or other packaged securities that merely provide price exposure to stocks do not qualify. Thorn noted that certain existing third-party tokenized stock models, including those offered by Robinhood, Ondo, and xStocks, differ from this standard. Specifically, Robinhood Stock Tokens are defined by Robinhood itself as “tokenized debt securities” that provide economic exposure only, with holders possessing no legal or beneficial ownership of the underlying company—thus failing to meet the SEC’s exemption criteria.
The SEC's new regulations restrict third-party tokenized stocks; the Robinhood model does not comply.
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Summary
On September 20, 2026, Alex Thorn of Galaxy Research noted that the U.S. SEC’s new crypto exchange regulations restrict third-party tokenized stocks, requiring tokens to represent actual NMS stocks and include legal, economic, and governance rights. Instruments such as notes or SPVs offering only price exposure do not qualify. Robinhood’s Stock Tokens, classified as tokenized debt, lack ownership and fail to meet the SEC’s criteria. The rules also align with CFT (Countering the Financing of Terrorism) requirements.
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