Robinhood stock tokens face scrutiny in the European Union after OpenAI warning

Lithuania's cardinal slope connected Monday said it has contacted Robinhood seeking clarifications implicit its tokenized equities aft OpenAI raised concerns implicit the merchandise past week.

"We person contacted Robinhood and are awaiting clarifications regarding the operation of OpenAI and SpaceX banal tokens arsenic good arsenic the related user communication," Bank of Lithuania spokesperson Giedrius Šniukas told CNBC via email.

"Only aft receiving and evaluating this accusation volition we beryllium capable to measure the legality and compliance of these circumstantial instruments. The accusation for investors indispensable beryllium provided successful clear, fair, and non-misleading language."

The Bank of Lithuania is Robinhood's lead regulator successful the European Union aft the institution received a brokerage licence and crypto plus work supplier licence from the cardinal bank. Robinhood was not instantly disposable for remark erstwhile contacted by CNBC.

It comes soon aft OpenAI distanced itself from Robinhood's "Stock Tokens" product. Launched connected June 30, the merchandise gives users successful the EU the quality to put successful shares successful the signifier of blockchain-based tokens, according to Robinhood — adjacent for privately held firms similar OpenAI and SpaceX.

Following Robinhood's announcement of the caller token offering, OpenAI took to societal media level X to pass users that "these 'OpenAI tokens' are not OpenAI equity."

"We did not spouse with Robinhood, were not progressive successful this, and bash not endorse it," the institution said astatine the time, adding "any transportation of OpenAI equity requires our support — we did not o.k. immoderate transfer" and urging users to attack the merchandise with caution.

In effect to OpenAI's informing past week, Robinhood had said that its banal tokens "give retail investors indirect vulnerability to backstage markets, opening up access, and are enabled by Robinhood's ownership involvement successful a peculiar intent vehicle."