Robinhood CEO Vlad Tenev argues that tokenization could have prevented the buying halt during the 2021 GameStop trading frenzy. He attributes the disruption to outdated settlement infrastructure, particularly the T+2 settlement cycle, which created massive deposit requirements and forced Robinhood to restrict trading. Tenev believes that moving to tokenized assets would allow for real-time settlement, reducing the risk of similar crises in the future. Robinhood is already implementing this in Europe, introducing DeFi-enabled stock tokens. Experts challenge Tenev's view, pointing out that traditional brokerages managed similar trading surges without halting purchases. They argue that Robinhood's issues stemmed from insufficient capital reserves and inadequate risk management rather than solely from settlement delays. Musheer Ahmed from FinStep Asia emphasized that every brokerage needs to ensure smooth trading for clients, regardless of market pressures. Despite the potential benefits of tokenization, regulatory challenges remain. The SEC has reiterated that tokenized securities are still subject to existing federal laws, meaning that simply using blockchain technology does not change an asset's legal standing. Tenev stressed the need for collaboration with regulators to establish clear standards for tokenization to prevent future trading disruptions.