The Digital Chamber, a crypto commerce affiliation, condemned the SEC for submitting a Wells discover to Robinhood Crypto.
In an announcement on Might 6, the affiliation expressed “profound disappointment and concern” over the motion and referred to as it an instance of regulatory overreach.
The Digital Chamber emphasised its ongoing opposition to the SEC extending its attain with out authorization from Congress. It famous that Congress is “actively deliberating laws” to outline regulatory jurisdiction over crypto and stated the SEC has violated the method.
To handle jurisdictional points, the Digital Chamber urged for “quick legislative motion” and stated SEC Chair Gary Gensler needs to be compelled to testify earlier than Congress.
Help for firms and buyers
The Digital Chamber defended Robinhood, acknowledging the agency’s self-proclaimed good-faith compliance efforts and makes an attempt to register with the SEC.
The affiliation stated:
“The Digital Chamber stands able to assist Robinhood Crypto and different affected firms… “
It didn’t explicitly describe plans to submit an amicus temporary in protection of Robinhood however stated it had completed so in different instances previously, highlighting its submission in Kraken’s case in February.
The Digital Chamber additional asserted the SEC’s actions are at odds with the regulator’s investor safety mandate, noting that aggressive enforcement harms new firms and reduces buyers’ skill to make autonomous monetary choices.
Robinhood Crypto acquired Wells discover
Robinhood disclosed in a Might 4 SEC submitting that its subsidiary, Robinhood Crypto, acquired a Wells discover. It commented additional on the event in a Might 6 publish.
The Wells discover signifies the SEC intends to suggest enforcement motion towards Robinhood. Nevertheless, the SEC has not but filed a lawsuit.
Robinhood nonetheless described the way it would possibly oppose the SEC’s intentions. The corporate stated it intends to interact with the SEC to point out the weak spot of any case when it comes to the info and the legislation. It additionally asserted the property it lists usually are not securities.
Robinhood stated it should proceed to supply its crypto-related providers.
