Exclusive Interview with Robinhood Crypto's General Manager: Acquiring Bitstamp Is About Expanding Into Global Markets—and Also a Nod to Frustration With the U.S. Regulatory Environment
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Exclusive Interview with Robinhood Crypto's General Manager: Acquiring Bitstamp Is About Expanding Into Global Markets—and Also a Nod to Frustration With the U.S. Regulatory Environment
In addition to discussing the acquisition, Robinhood Crypto's General Manager Johann Kerbrat shared his outlook on the current cryptocurrency landscape.
Navigating Web3 tides with focused insightsAuthor: Sage D. Young, Unchained
Translation: Yangz, Techub News
With 10.9 million monthly active users and a $17.2 billion on-chain portfolio, Robinhood has earned its title as a "crypto giant." Yesterday, Robinhood announced it will acquire cryptocurrency exchange Bitstamp for a final purchase price of $200 million in cash, marking a significant step toward global expansion beyond the United States. The acquisition is expected to close in the first half of 2025, subject to customary closing conditions including regulatory approvals. A definitive agreement has already been signed. Barclays Capital will serve as Robinhood’s exclusive financial advisor, while Galaxy Digital Partners will act as Bitstamp’s exclusive financial advisor.
Robinhood noted that Bitstamp was founded in 2011 and has offices in Luxembourg, the UK, Slovenia, Singapore, and the US. According to CoinGecko data, Bitstamp's 24-hour trading volume reaches $234.4 million.
To better understand this acquisition, Unchained interviewed Johann Kerbrat, General Manager of Robinhood Crypto. In addition to discussing the acquisition, Kerbrat shared his outlook on the current state of the crypto industry, including the relationship between the U.S. Securities and Exchange Commission (SEC) and crypto projects, the uncertain political landscape in the U.S., and why Robinhood refuses to list certain tokens.
Key points from the interview:
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What would be the best-case scenario six months after Robinhood completes the acquisition of Bitstamp?
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Why are Robinhood and Uniswap Labs both in the same process, having received Wells Notices from the U.S. SEC?
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Why does “lack of regulatory clarity in the U.S.” stand out as a primary reason for expanding into the EU?
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Decentralization is one factor Robinhood considers when deciding whether to list a token.
Q: First, could you introduce yourself?
A: I've been working at Robinhood Crypto for over three years, initially joining as Chief Technology Officer. I’ve spent my life working as an engineer, but back in 2010—when everyone was still asking, 'Why do we need cryptocurrency?' 'Why do we need Bitcoin?' and 'What even is Bitcoin?'—I joined a crypto company. Now look: Bitcoin is no longer the question. Institutions on Wall Street are buying Bitcoin daily through ETFs. We’ll see more real-world use cases with actual users emerging in the U.S. and other countries.
Q: How long has this acquisition been in the works?
A: Cryptocurrency and blockchain are here to stay as foundational elements of the future financial world. We’ve consistently looked for ways to accelerate our business growth, including potential mergers and acquisitions or partnerships with other players in the space.
I can’t disclose exactly how long we’ve been preparing, but we’re very excited about this deal. It advances our international expansion in crypto and brings Robinhood its first international business—a major milestone for the company.
Q: How do you envision Robinhood’s business evolving in the EU post-acquisition?
A: Overall, we want to expand our total addressable market, and the EU represents a strong opportunity. Acquiring Bitstamp significantly expands our reach since they hold valid licenses and registrations across more than 50 countries globally. They bring us customers from the EU, the UK, the U.S., and parts of Asia.
Q: From your perspective, what would be the best-case scenario six months after the acquisition?
A: Honestly, the deal has just been announced, and it will take some time before it closes. We expect the full process to wrap up in the first half of 2025, so the best-case scenario is simply completing the transaction successfully and obtaining all necessary regulatory approvals.
Q: Could you provide more detail on the current status of the deal? Specifically, what do regulators need to do? When you say “regulators,” are you referring to U.S., EU, or both?
A: Yes, both. Closing the deal requires adjustments based on various regulatory approvals from multiple jurisdictions. Our prior experience engaging with U.S. regulators such as the SEC, FINRA, and the New York Department of Financial Services helps, and we now also have relevant experience in the UK and EU. Overall, we don’t anticipate any major roadblocks.
Q: Uniswap responded to its Wells Notice on May 21. After reading their response, what insights did you gain?
A: Uniswap Labs and we are in a similar situation—we recently received a Wells Notice too. My main takeaway is that U.S. regulators need to clearly define what constitutes a security versus a cryptocurrency. We firmly disagree with the notion that any asset offered on our platform qualifies as a security. We have a rigorous internal process for listing tokens, including thorough securities analysis.
We’ve made repeated efforts to engage with the SEC. As of this interview, we’ve met with them 16 times, attempting to register. We’re deeply disappointed by their lack of response and simply hope for clarity soon.
Q: After so many meetings with the SEC, were you surprised that Robinhood still received a Wells Notice?
A: Of course, we were disappointed. We’ve always taken a proactive approach. When the SEC Chair publicly stated that crypto companies should register, we immediately tried to do so.
Q: Given the current crypto policy environment—growing optimism around the SEC’s move on spot Ethereum ETFs, yet several crypto firms receiving Wells Notices, and ongoing regulatory uncertainty in the U.S.—what regulatory strategies is Robinhood preparing?
A: The FIT21 Act (Financial Innovation and Technology for the 21st Century Act) provides a solid path forward. At minimum, it offers regulatory clarity and a framework we can comply with. Robinhood operates both as a broker-dealer and a crypto platform, already regulated by FINRA, the SEC, and the NYDFS. We know how to work with regulators. If, under these circumstances, we still can’t achieve clear guidance, something is clearly wrong. We hope to see progress through this legislation. That said, the lack of regulatory clarity in the U.S. is precisely why expanding into the EU is a key strategic priority. The EU will implement MiCA, a clear regulatory framework, in January 2025. I’m surprised the U.S. is lagging behind Europe in establishing a defined crypto regulatory regime.
Q: Can you point to specific aspects where the current U.S. regulatory environment differs starkly from those abroad?
A: The regulatory treatment of crypto itself is fundamentally different. For example, our SEC Chair says crypto companies must register with the SEC. So we’ve repeatedly tried to register—but without success. Even if registration were possible, there are still unresolved questions around asset issuers.
The bigger issue is the millions of American customers who have crypto exposure but operate without clear rules. We’ve adopted a safety-first approach—listing only 15 assets and never offering staking. Yet the irony remains: you can choose caution and still receive a Wells Notice, or choose aggression and face other risks.
Q: What are the most common reasons Robinhood declines to list a token?
A: It depends case by case, including factors like decentralization. For PoW chains, we assess whether mining power is sufficiently decentralized to prevent rug pulls or central control. For PoS chains, we examine whether there are enough validators and whether validator sets are adequately decentralized.
There are also operational considerations—does the token have sufficient liquidity? Do we have reliable methods to support the asset? Are there enough market makers and liquidity providers? There are many factors, and no single one outweighs others. We aim for a safety-first approach.
Q: What would SEC approval of a spot Ethereum ETF mean for the rest of the world?
A: I'm not sure this approval will carry huge symbolic weight. But given that people haven't traditionally looked to the U.S. for regulatory clarity, the approval could bring more institutional participation and add legitimacy to the broader crypto ecosystem.
Q: Professionally or personally, which blockchain networks or protocols are you currently engaged with?
A: Personally—and this isn’t investment advice—I try to study nearly every new chain, understanding what they offer, what makes them unique, and what kinds of applications are being built on them.
Lately, I’ve been quite active on Base. Understanding applications like Friend.Tech and observing how people use them gives us valuable insights into where we need to improve.
Our collaboration with Arbitrum has also been very active recently. We announced a partnership a month or two ago, which excites us.
Q: Robinhood’s user base is highly diverse. Among those holding crypto, who are the most loyal and engaged users?
A: Fifty percent of Robinhood investors are new to investing—they didn’t necessarily have brokerage accounts before. Our customer base is also highly diverse, with many millennials and Gen Z users. To me, that’s the most exciting part. It truly opens doors and helps narrow generational wealth gaps.
In crypto, we see a very diverse group. Some users are highly active traders, executing numerous buy-sell transactions daily or hourly. Others are older investors who buy and hold for years. My challenge is meeting the needs of all these users and building features that work for everyone.
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