Robinhood's Tenev and Andrew Cuomo Both Sound the Alarm: America Is Falling Behind on Crypto Rules

Robinhood's Tenev and Andrew Cuomo Both Sound the Alarm: America Is Falling Behind on Crypto Rules

Two very different figures in American finance delivered strikingly similar messages this week: the United States is at risk of watching the next generation of financial infrastructure get built somewhere else. Robinhood CEO Vlad Tenev pushed regulators to unlock tokenized stocks, while former New York Governor Andrew Cuomo renewed his call for Congress to finally pass the long-stalled CLARITY Act. Together, their comments capture a growing sense of urgency inside the industry as legislative momentum in Washington continues to stall.

Tenev: Tokenization Is a "Supercycle," and the U.S. Risks Being Left Behind

Robinhood CEO Vlad Tenev is pressing U.S. regulators to clear a path for tokenized stocks, arguing that America risks ceding the next generation of financial-market infrastructure to overseas markets. Writing on X, Tenev framed the financial system as being in the early stages of a global "tokenization supercycle," building on a prediction he made last year that the technology would become a "freight train" reshaping traditional finance.

Robinhood has already rolled out tokenized U.S. stocks outside the country, giving users in more than 120 countries economic exposure to over 190 U.S. equities, including dividend payments. Tenev explained that the effort isn't simply about putting stocks on a blockchain for its own sake, but about rebuilding the infrastructure beneath asset ownership so that value can move as freely as information does online — something he said unlocks three immediate advantages for American investors. 

Tenev pointed to the 2021 GameStop episode, when Robinhood restricted purchases of some shares after clearinghouses sharply raised collateral demands, as evidence that the current settlement system can buckle under stress. He argued that tokenized stocks could enable real-time settlement and round-the-clock trading, eliminating the multi-day lag that forced brokerages into emergency measures during that period. "It would be a strange outcome if the world builds the future ownership infrastructure on top of American assets while American investors are left behind," Tenev wrote, urging policymakers to move quickly to update the rules.

Notably, Robinhood's tokenized shares are backed 1:1 by the underlying stock, but holders do not directly own those shares — a distinction that has become central to the broader debate over what tokenized equities actually represent for investors.

Cuomo: "It Has to Pass" — CLARITY Act Seen as Key to Bridging Crypto and Traditional Markets

While Tenev focused on tokenized equities, former New York Governor Andrew Cuomo used his platform to press a related but distinct case: passing the CLARITY Act, the market-structure legislation meant to finally define which federal agency oversees different types of digital assets. Cuomo, who now co-chairs a joint venture between crypto exchange OKX and NYSE parent Intercontinental Exchange, argues the bill is essential to linking crypto and traditional financial markets.

Cuomo has been consistent on this point for months, framing regulatory ambiguity as the single biggest obstacle holding back the industry's growth in the U.S. He has repeatedly argued that companies aren't asking for special treatment — just a clear rulebook to operate within, comparing the situation to a sports match with no referee and no marked boundaries.

The renewed push comes at a delicate moment for the legislation. Momentum for the CLARITY Act has cooled considerably over the summer: the Senate left for its August recess without holding a vote on the bill, and analysts have sharply cut their odds of passage before the end of the year as unresolved disputes over ethics provisions, enforcement authority, and stablecoin yield rules continue to divide lawmakers. Senate Majority Leader John Thune has indicated a procedural vote could come shortly after Congress reconvenes in mid-September, but the runway before the midterm election recess remains short.

Why It Matters

Taken together, these two interventions underline a theme that has run through the crypto industry's messaging all year: the technology and the capital are ready to move, but U.S. rules haven't caught up. Tenev's tokenization push and Cuomo's CLARITY Act advocacy both point to the same underlying anxiety — that jurisdictions in Europe and Asia are moving faster to formalize digital-asset frameworks, and that every month of U.S. delay pushes innovation, listings, and capital further offshore. With Congress facing a compressed legislative calendar before the midterms and the SEC only just beginning to formalize its own crypto rulemaking, the pressure from industry leaders on both sides of the aisle shows no sign of easing.