1 week ago
Robinhood CEO Vlad Tenev voiced beardown concerns astir the limitations regarding the accessibility of crypto for Americans and criticized the SEC for its “regulation by enforcement” attack toward the industry.
Tenev made the connection during a CNBC interview connected May 9, wherever helium besides discussed the important summation successful crypto trading connected the level and the SEC’s caller Wells Notice against the firm’s crypto portion that claims it is selling unregistered securities.
Regulatory hurdles
Robinhood’s crypto trading volumes surged 224% successful the archetypal quarter. Despite this growth, Tenev disclosed that the company’s discussions with the SEC had stalled aft 16 meetings without immoderate advancement arsenic the regulator did not prosecute successful productive discourse.
Tenev explained during the interview:
“We tried to make what we telephone a peculiar intent broker-dealer for transacting successful crypto assets… Unfortunately, a wide way guardant with the SEC ne'er emerged, and they did not reciprocate our efforts.”
The failed discussions yet resulted successful the SEC issuing a Wells Notice against the firm, indicating imaginable enforcement actions for alleged securities violations.
Tenev expressed disappointment implicit the SEC’s determination to halt discussions and highlighted the regulator’s penchant for “regulation by enforcement” alternatively than adapting its rules to facilitate the evolving crypto industry.
He argued for regulatory adjustments to licence brokers to incorporated integer assets, a determination helium believes the SEC is presently reluctant to make.
Tenev added that the SEC has the quality to alteration the regulatory model for crypto but determination seems to beryllium nary intent to bash truthful from the regulator.
Importance of access
The Robinhood CEO framed the concern arsenic a broader contented of user rights, stressing the value of crypto and the necessity for Americans to person unfettered entree to them.
Tenev said the steadfast does not hold with keeping Americans retired of the crypto industry, particularly arsenic it is becoming “more and much important.”
The Wells Notice against Robinhood marks a important infinitesimal successful the broader treatment connected however fiscal regulatory bodies should negociate the increasing crypto market.
The struggle with the SEC places Robinhood astatine the halfway of a captious statement implicit the aboriginal of crypto regularisation and the relation of accepted fiscal oversight successful an progressively integer economy.
The station Robinhood CEO says SEC unwilling to facilitate crypto manufacture contempt ‘good faith’ appeared archetypal connected CryptoSlate.
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