The Digital Chamber, a crypto commerce affiliation, condemned the SEC for submitting a Wells discover to Robinhood Crypto.
In a press release 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 stated the SEC has violated the method.
To handle jurisdictional points, the Digital Chamber urged for “rapid legislative motion” and stated SEC Chair Gary Gensler must be compelled to testify earlier than Congress.
Help for corporations 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 help Robinhood Crypto and different affected corporations… “
It didn’t explicitly describe plans to submit an amicus transient in protection of Robinhood however stated it had carried out 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 corporations and reduces buyers’ potential to make autonomous monetary selections.
Robinhood Crypto obtained Wells discover
Robinhood disclosed in a Could 4 SEC submitting that its subsidiary, Robinhood Crypto, obtained a Wells discover. It commented additional on the event in a Could 6 publish.
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 nonetheless described the way it may oppose the SEC’s intentions. The corporate stated it intends to interact with the SEC to indicate the weak spot of any case by way of the details and the legislation. It additionally asserted the property it lists are usually not securities.
Robinhood stated it is going to proceed to supply its crypto-related providers.
