Robinhood CEO Says Trading Is Not Gambling as Company Expands Into New Markets
Robinhood CEO Vlad Tenev is pushing back against the idea that trading should be treated like gambling.
As Robinhood takes on a bigger role in the U.S. financial system, Tenev said trading and investing are important parts of healthy markets. His comments came as the company expands beyond simple stock trading into areas like prediction markets, tokenized assets, banking, and government-backed investment programs.
In an interview with The New York Times, Tenev said Robinhood is helping operate the new Trump Accounts program, which aims to help children start investing at an early age.
He also revealed that more than 90% of his personal wealth is still invested in Robinhood shares, showing his confidence in the company’s long-term future.
Robinhood Helps Launch Trump Accounts
Trump Accounts are tax-deferred investment accounts designed for children born between 2025 and 2028.
The program includes a $1,000 government contribution for eligible children, and families can add more money after activating the accounts.
Robinhood helped build the app used to manage the program. The company sees this partnership as a way to introduce younger Americans to long-term investing.
Robinhood became popular among younger traders during the pandemic, when millions of people started trading stocks, options, and cryptocurrencies. Now, the company wants to move beyond short-term trading and become a broader financial platform.
Tenev Defends Trading Against Gambling Criticism
Tenev rejected the argument that all trading is similar to gambling.
He said speculation is a normal part of financial markets because investors are always making decisions based on their expectations about future prices.
According to Tenev, markets need people who are willing to take risks and make predictions about where assets could move.
The discussion has become more important as Robinhood grows its prediction market business. These markets allow users to trade contracts based on future events, creating debate about whether they are closer to investing or betting.
Robinhood Wants to Move Past Its Meme Stock Reputation
Robinhood became famous during the 2021 meme stock boom, especially around the GameStop trading event.
However, Tenev says the company is now focused on becoming much bigger than a platform for retail traders.
Robinhood has expanded into several new areas, including:
- Prediction markets
- Tokenized real-world assets
- Cryptocurrency services
- Banking products
- Capital markets
The company also launched Robinhood Chain, an Ethereum layer-2 network designed to support tokenized assets.
Robinhood has also received approval for Robinhood Securities to participate as an IPO underwriter, giving the company a bigger role in traditional finance.
Tenev Remains Heavily Invested in Robinhood
Tenev said most of his personal wealth remains tied to Robinhood shares.
He recently sold 375,000 shares through a planned stock sale arrangement but continued holding more than 48 million Class B shares.
His large ownership shows that he remains focused on Robinhood’s long-term growth as the company builds a wider financial ecosystem.
Robinhood’s strategy is now moving far beyond its original commission-free trading model. The company is combining investing, crypto, prediction markets, tokenization, and government programs as it tries to become a major player in global finance.
