Regulation
Robinhood Crypto Target of Potential SEC Enforcement
that of Robinhood The cryptocurrency sector could become the target of regulatory measures.
The trading platform said on Monday (May 6) that it had received a Wells notice from the United States. Security and Exchange Commission (SEC) indicating that they will recommend that the commission take enforcement action against the company.
“After years of good faith attempts to work with the SEC to clarify the regulations, including our well-known attempt to ‘get in and register,’ we are disappointed that the agency has decided to issue a Wells Notice related to our crypto operations in the United States. Dan Gallagherthe company’s chief legal, compliance and corporate affairs officer, said in a statement blog post.
“We firmly believe that the assets listed on our platform are not securities and we look forward to engaging with the SEC to clearly explain how any case against Robinhood Crypto would be weak on both a factual and legal basis.”
According to the blog post, Robinhood Crypto claims to have made “difficult choices not to list certain tokens or not provide products, such as loans and staking, that the SEC previously classified as securities under public actions against other platforms”.
The company also claims to have “heeded calls from the SEC” and attempted to register a specialist broker with the regulator. Robinhood says the Wells notice will not affect customer accounts or its services.
An SEC spokesperson told PYMNTS that the commission does not comment on “the existence or non-existence of a possible investigation.”
The SEC last year filed a well notice against Coinbase – at the time it was the second crypto company to receive such notice – months before continue the platform for securities violations.
Coinbase sought to have that case dismissed, although a federal judge ruled in March that the SEC had grounds. bring him to trial.
Last year saw a series of enforcement actions taken against crypto companies including Coinbase, Binance And Kraken. At an event last month, compliance officers from each company – all of whom reached agreements with regulators — discussed the lessons they learned from this experience.
For example, Valérie-Leïla Jaberglobal head of financial crime compliance at Coinbase, said the company’s compliance team has worked with its technology teams to strengthen its ability to quickly respond to compliance-related alerts as trading volume increases. was increasing.
See more in: crypto regulation, cryptocurrency, News, PYMNTS News, regulations, Robin Hood, Cryptocurrency Robinhood, SECOND, Security and Exchange Commission, Well Notice, What’s hot