Robinhood Stock Rises with Bitcoin Amid CFTC's New Crypto Proposal

Robinhood Markets Inc. (NASDAQ:HOOD) shares are popping Friday as crypto-linked stocks rally following new regulatory moves from the CFTC and SEC this week, coming just after the Senate failed to advance the CLARITY Act.

CFTC Eases Rules for Prediction Market Software Providers

Regulators at the CFTC cleared the way this week for developers building what the agency calls “passive software” to plug users into regulated derivatives products, prediction markets included, without registering as brokers themselves, provided they avoid touching customer money or steering how trades get executed.

The move builds on groundwork already laid with crypto wallet Phantom, whose more than 20 million users have had access to similar prediction market functionality, and the exemption stays in place only until the CFTC finalizes formal rules.

SEC Opens a Path for Tokenized U.S. Stocks

Separately, the SEC rolled out a temporary five-year window letting approved venues bring blockchain-based versions of U.S. stocks to market, provided those digital shares preserve normal shareholder rights like dividends and voting power, and pause trading whenever the underlying stock’s exchange halts.

Robinhood has effectively been rehearsing for this moment already. CEO Vlad Tenev has pointed to 200 tokenized U.S. stocks currently trading through the company’s international arm across more than 120 countries, though U.S. customers remain locked out of that offering for now.