Robinhood Markets Inc. (NASDAQ:HOOD) jumped just over 9% on September 18, adding to a 5% gain in the previous session, after the SEC approved a temporary framework that allows certain platforms to facilitate trading in tokenized U.S.-listed securities. Given the company’s aggressive push into tokenized stocks and the development of Robinhood Chain, the framework initially looks like a major regulatory win and potentially the clearest path forward yet for the U.S. tokenized-securities market. But there is a catch: the framework was structured to exclude the exact product the company already offers, while also giving public companies the power to reject it, which the company’s CEO has publicly opposed.
The SEC Gives Tokenized Stocks a Five-Year Green Light
On September 17, the SEC granted temporary, conditional exemptive relief allowing approved venues to trade tokenized exchange-listed stocks onchain under conditional exemptions from the Exchange Act’s definitions of ‘exchange’ and, for certain liquidity providers, ‘dealer. With its ongoing investment in tokenized stocks and blockchain infrastructure through Robinhood Chain, Robinhood could be a potential beneficiary of the new framework. Trading volume climbed to roughly 31.7 million shares, or 1.37 times the one-month average, although the stock remains about 28% below its 52-week high.
Robinhood Markets is currently trading at a premium compared with both its own 5-year average and sector median. The stock’s forward P/E stands at 45.46x, well above its historical average of 37.10. By comparison, the sector is currently trading at a forward P/E of 10.88x. This suggests that the projected earnings growth is already reflected in the share price. Further upside may depend on Robinhood exceeding expectations or sustaining elevated growth long enough to justify the multiple. However, there is a possibility that the company’s growth ambitions solidify its moat, in which case we can safely pay a higher multiple. In particular, the company’s financial super-app ambitions could give it exactly the moat it is looking for.
The Framework Excludes Robinhood’s Existing Product
Robinhood may face a hurdle with its existing stock tokens, which are synthetic products that offer economic exposure rather than actual ownership. As a result, they do not qualify for the exemption, which requires full shareholder rights, including voting, dividend, and other shareholder rights. Robinhood would therefore need a different structure for any U.S. product seeking to operate under the exemption. The order further allows listed companies to object to third-party tokenization within 30 days, directly opposing CEO Vlad Tenev’s public stance. Meanwhile, the relief is temporary and subject to comments, while Coinbase and the NYSE’s planned 24/7 digital venue could move into the compliant space first.
A formal U.S. pathway for onchain equities is a positive development, while Robinhood’s broad product offering gives it multiple ways to benefit. The challenge is that the exemption currently favors structures the company does not have. It also gives issuers powers the company has opposed and could be revised after public comments.
Institutional interest in Robinhood appears to be building gradually. The number of hedge funds holding the stock increased from 84 at the end of the first quarter of 2026 to 87 at the end of the second quarter of 2026. Short interest stood at 4.54% of float as of August 31, 2026. That relatively modest level leaves room for additional buying if the new SEC framework attracts more institutional money to the stock.
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