Robinhood Under Fire in EU Over Controversial OpenAI, SpaceX Stock Tokens

• Robinhood faces EU probe over tokens tied to OpenAI and SpaceX.
• Lithuania’s central bank demands clarity on Robinhood’s blockchain stock token model.
• OpenAI warns users could be misled by Robinhood’s equity-like digital tokens.

Robinhood Markets is facing regulatory pressure in the European Union after launching blockchain-based stock tokens tied to OpenAI and SpaceX. The offering, introduced on June 30, has raised concerns over legality and investor clarity, prompting an investigation by Lithuania’s central bank.

The Bank of Lithuania, which regulates Robinhood’s EU operations, has requested detailed information on how the tokens are structured. The nature of these digital instruments does not link them to actual equity but instead provides indirect exposure to the valuation of non-listed companies.

According to a statement carried by CNBC, authorities are waiting for Robinhood to respond before assessing compliance. One of the central bank’s spokespeople, Giedrius Sniukas, revealed that the review will start only after the company has submitted complete documentation.

In the meantime, OpenAI has publicly disassociated itself from the token offering, citing that the product threatens to mislead consumers into thinking they own real shares. After that, Robinhood has renamed one of these tokens Demo 1, making it clear that it is in the testing phase.

Also Read: $2.47M in BTC Shorts Liquidated in 1 Hour Without Price Moving an Inch

EU Scrutiny Mounts as Trading Halted on OpenAI, SpaceX Tokens

Robinhood CEO Vlad Tenev, in an interview with Bloomberg Television, said the tokens are structured to simulate exposure to high-value companies. He emphasized that the digital assets do not represent ownership and are still in the pilot phase.

The tokens remain non-tradable, and their pricing is settled utilizing internal valuation techniques adopted by Robinhood. On-chain information shows that about 215 tokens were already minted using the Layer 2 network provided by Arbitrum, where Robinhood has created its new blockchain infrastructure.

Robinhood is still building its European tokenized asset strategy, though regulatory approval is still uncertain. The company intends to launch more than 200 tokenized U.S. stocks and ETFs in the upcoming months.

Besides tokenized stocks, Robinhood also plans to introduce perpetual futures, but there are no particular launch periods. The latest result of the Lithuanian investigation will determine where Robinhood is going in terms of its European blockchain growth.

Robinhood’s move into blockchain-based stock tokens has triggered pushback from both regulators and private firms. With OpenAI publicly disowning the product and the Bank of Lithuania demanding answers, the company’s path forward in the EU appears uncertain.

Also Read: XRP Crashes After Fake Breakout Above $2.30 Wipes Out Bullish Traders

The post Robinhood Under Fire in EU Over Controversial OpenAI, SpaceX Stock Tokens appeared first on 36Crypto.