The Digital Chamber criticizes the SEC for issuing a Wells warning against Robinhood

THE Digital cameraa cryptocurrency trade association, condemned the SEC for filing a notice on Wells Robin Hood Cryptocurrency.

In a statement on May 6ththe association expressed “deep disappointment and concern” about the action and called it an example of regulatory overreach.

The Digital Chamber emphasized its continued opposition to the SEC’s expansion of the SEC without congressional authorization. He noted that Congress is “actively deliberating legislation” to define regulatory jurisdiction over cryptocurrencies and said the SEC has violated the process.

To address the jurisdictional issues, the Digital Chamber urged “immediate legislative action” and said SEC Chairman Gary Gensler should be forced to testify before Congress.

Support for companies and investors

The Digital Chamber defended Robinhood, acknowledging the company’s self-proclaimed good faith compliance efforts and attempts to register with the SEC.

The association said:

“The Digital Chamber is ready to support Robinhood Crypto and other interested companies…”

He did not explicitly describe his intention to file an amicus brief in defense of Robinhood, but said he had done so in other cases in the past, highlighting his submission in the case of Kraken in February.

The Digital Chamber also said the SEC’s actions run counter to the regulator’s investor protection mandate, stressing that aggressive enforcement harms new companies and reduces investors’ ability to make autonomous financial decisions.

Robinhood Crypto received Wells’ notice

Robin Hood disclosed An SEC filing on May 4 said its subsidiary, Robinhood Crypto, received a notice from Wells. He commented further on the development in a May 6 post.

Wells’ notice indicates that the SEC intends to recommend enforcement action against Robinhood. However, the SEC has not yet filed a lawsuit.

Robinhood, however, described how it might oppose the SEC’s intentions. The company said it intends to engage with the SEC to demonstrate the weakness of each case in terms of facts and law. It further stated that the assets listed are not securities.

Robinhood said it will continue to offer its cryptocurrency-related services.

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