A new digital assets regulatory framework could significantly expand the offerings of Robinhood (NASDAQ:HOOD) and Coinbase (NASDAQ:COIN), enabling both platforms to list a broader range of crypto assets and tokenized equities, according to a new Bernstein report.

What Happened: The report outlines how evolving regulations might reshape the competitive landscape for investment platforms, fostering integrated multi-asset trading environments.

The Bernstein report highlights that the anticipated regulatory framework, influenced by bills like FIT21 and the Lummis-Gillibrand Responsible Financial Innovation Act, could allow platforms to trade both securities and non-securities under a unified structure, overseen by the SEC and CFTC.

For Robinhood, currently operating as a broker-dealer, this clarity would broaden its addressable market.

The new framework could enable Robinhood to list tokenized equities of leading public and private companies, potentially creating new marketplaces, such as for prediction markets similar to Polymarket, which Robinhood has already integrated via the Kalshi platform.

Also Read: Trump Signs Landmark Crypto Law, Repeals Biden-Era IRS Rule Targeting DeFi Platforms

For Coinbase, the largest U.S. crypto exchange with a 66% market share, the regulatory changes could streamline operations and enhance competitiveness against international exchanges like Binance.

The report explains that Coinbase, which currently operates with multiple state licenses, could be licensed as an alternative trading platform, avoiding the cumbersome state-by-state compliance process.

"With greater regulatory clarity, COIN can be more aggressive versus international exchanges," the report notes, highlighting that over 90% of crypto trading volume remains offshore.

This shift would allow Coinbase to list more assets beyond its current conservative approach of 250 tokens, potentially including token-linked futures contracts, a market where offshore futures volumes are three to four times larger than spot volumes.

Bernstein analysts argue that the distinction between crypto and equity traders is diminishing, as evidenced by Robinhood's success in attracting young traders who actively engage in both markets, driving operational efficiencies through integrated back-ends and blockchain technology.

Marathon Digital’s (NASDAQ:MARA) initiative to energize 25MW micro-data centers using flared natural gas in Texas and North Dakota was also highlighted, showcasing cost-effective Bitcoin mining strategies.

Meanwhile, the SEC's approval of options trading on spot Ethereum ETFs from issuers like BlackRock, Bitwise and Grayscale reflects growing institutional acceptance of digital assets.

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