Crypto’s Second Act: Infrastructure, Clarity, and Opportunity

• The GENIUS Act provides long awaited regulatory clarity for crypto.

• The SEC has voiced support for the alignment of innovation and regulation.

• This should function as a catalyst for the tokenization of securities.

The next wave of the cryptocurrency rally is just getting started.

For years, blockchain has been touted as a promising tool for financial transactions. The hurdle has always been regulatory ambiguity—particularly the reluctance of governing bodies like the Securities and Exchange Commission (“SEC”) to provide clear guidance.

Yet despite that, cryptocurrencies like Bitcoin have remained solid performers for investors with vision and patience. One key catalyst behind their performance has been the narrative that Bitcoin is akin to digital gold. Because its supply is capped, the available coins become increasingly scarce—potentially boosting their dollar value over time.

But now, the narrative is shifting back toward financial infrastructure. Last week, Congress passed the Guiding Enhanced National Innovation for Unified Standards (“GENIUS”) Act. While the bill primarily focuses on regulating stablecoins, its broader impact is rippling across the digital asset ecosystem.

With defined rules in place, platforms like Coinbase and Robinhood are now testing tokenized securities. And based on recent commentary from the SEC, regulators support the move. The shift acts as a catalyst for broader use of the crypto assets that enable tokenization.

But don’t take my word for it, let’s look at what the data’s telling us…

The SEC Supports Securities Tokenization

Two weeks ago, SEC Commissioner Hester Peirce reminded the market: “Tokenized securities are still securities.” A simple statement, but a powerful one. As financial firms begin experimenting with blockchain-based versions of traditional assets, Peirce’s message is clear: innovation is welcome, but it must operate within existing securities laws.

Her remarks come as Robinhood and Coinbase accelerate tokenization strategies. Both firms are betting that blockchain can improve how securities are issued, traded, and custodied. And I agree—the opportunity is enormous for custodians and investors alike, through faster settlement, fractional ownership, and constant access. The regulatory framework isn’t a barrier—it’s a blueprint for firms looking to reshape the financial markets.

Robinhood’s Tokenization Strategy

Robinhood recently launched tokenized versions of more than 200 U.S. stocks and exchange-traded funds for European users. These tokens trade on Arbitrum, a layer-two Ethereum network. They offer features like dividend support and zero commissions. The firm also submitted a proposal to the SEC outlining a framework for tokenized real-world assets. It included a new trading venue called the Real World Asset Exchange.

The plan is built around a concept called “token-asset equivalence.” The idea is that if a token represents a security, then it should be treated just like the security itself. That would allow broker-dealers to custody and trade tokenized assets under existing rules, reducing regulatory uncertainty. Robinhood CEO Vlad Tenev called tokenization “a new paradigm for institutional asset allocation,” and the firm is building its own blockchain to support 24/7 trading and self-custody.

Coinbase Reenters the Arena

Coinbase is also revisiting plans for security tokenization. The company shelved the idea in 2020 due to unclear regulatory guidance. But recent signals suggest a more open environment. CEO Brian Armstrong has long argued that tokenized securities could broaden access to financial markets. While CFO Alesia Haas noted that regulators are now more receptive to product innovation.

As a result, Coinbase is seeking approval to offer tokenized versions of its own publicly traded shares, along with other securities. The company’s broader strategy now includes building infrastructure for digital securities and advocating for clearer regulation around tokenized assets.

Regulatory Clarity Is the Catalyst

Peirce’s stance is a call for responsible innovation. She’s urging firms to engage with the SEC, explore exemptions, and work within the existing rulebook. It’s a notable shift—and a welcome one. Tokenization isn’t about bypassing regulation. It’s about upgrading the plumbing of financial markets while preserving their legal foundation.

If Robinhood and Coinbase succeed, they won’t just expand market access—they’ll help define the infrastructure of next-generation capital markets. But as Peirce reminds us, the legal identity of a security doesn’t change just because it’s on a blockchain.

The technology is ready. The use cases are compelling. Now it’s about execution—and alignment with the rules already in place. And as tokenization gains traction, it will likely boost demand for the crypto assets that enable it.

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