The Digital Chamber slams SEC for issuing Wells Notice against Robinhood

The Digital Chamber, a crypto commercialized association, condemned the SEC for submitting a Wells announcement to Robinhood Crypto.

In a connection connected May 6, the relation expressed “profound disappointment and concern” implicit the enactment and called it an illustration of regulatory overreach.

The Digital Chamber emphasized its ongoing absorption to the SEC extending its scope without authorization from Congress. It noted that Congress is “actively deliberating legislation” to specify regulatory jurisdiction implicit crypto and said the SEC has violated the process.

To code jurisdictional issues, the Digital Chamber urged for “immediate legislative action” and said SEC Chair Gary Gensler should beryllium compelled to attest earlier Congress.

Support for companies and investors

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

The relation said:

“The Digital Chamber stands acceptable to enactment Robinhood Crypto and different affected companies… “

It did not explicitly picture plans to taxable an amicus little successful defence of Robinhood but said it had done truthful successful different cases successful the past, highlighting its submission successful Kraken’s case successful February.

The Digital Chamber further asserted the SEC’s actions are astatine likelihood with the regulator’s capitalist extortion mandate, noting that assertive enforcement harms caller companies and reduces investors’ quality to marque autonomous fiscal decisions.

Robinhood Crypto received Wells notice

Robinhood disclosed successful a May 4 SEC filing that its subsidiary, Robinhood Crypto, received a Wells notice. It commented further connected the improvement successful a May 6 post.

The Wells announcement indicates the SEC intends to urge enforcement enactment against Robinhood. However, the SEC has not yet filed a lawsuit.

Robinhood nevertheless described however it mightiness reason the SEC’s intentions. The institution said it intends to prosecute with the SEC to amusement the weakness of immoderate lawsuit successful presumption of the facts and the law. It besides asserted the assets it lists are not securities.

Robinhood said it volition proceed to connection its crypto-related services.

The station The Digital Chamber slams SEC for issuing Wells Notice against Robinhood appeared archetypal connected CryptoSlate.