The Digital Chamber, a crypto commerce affiliation, condemned the SEC for submitting a Wells discover to Robinhood Crypto.
In an announcement on Could 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 mentioned the SEC has violated the method.
To handle jurisdictional points, the Digital Chamber urged for “quick legislative motion” and mentioned SEC Chair Gary Gensler must be compelled to testify earlier than Congress.
Assist for firms and traders
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 mentioned:
“The Digital Chamber stands able to assist Robinhood Crypto and different affected firms… “
It didn’t explicitly describe plans to submit an amicus transient in protection of Robinhood however mentioned it had performed so in different instances prior to now, 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 traders’ potential to make autonomous monetary selections.
Robinhood Crypto acquired Wells discover
Robinhood disclosed in a Could 4 SEC submitting that its subsidiary, Robinhood Crypto, acquired a Wells discover. It commented additional on the event in a Could 6 put up.
The Wells discover signifies the SEC intends to advocate enforcement motion in opposition to Robinhood. Nonetheless, the SEC has not but filed a lawsuit.
Robinhood however described the way it would possibly oppose the SEC’s intentions. The corporate mentioned it intends to have interaction with the SEC to point out the weak point of any case by way of the info and the legislation. It additionally asserted the property it lists will not be securities.
Robinhood mentioned it should proceed to supply its crypto-related providers.
