Robinhood Markets is preparing to fight the U.S. Securities and Exchange Commission (SEC) in court to defend its crypto business and establish “regulatory clarity in the United States for the benefit of our customers,” CEO Vlad Tenev said after his company received a Wells notice from the securities regulator. “The SEC’s continued attack on crypto, coupled with recent rule proposals like the one related to predictive data analytics, mark yet another improper attempt by the administrative state to stifle innovation,” the executive cautioned.
Robinhood Prepares to Fight SEC in Court Over Crypto, CEO Reveals
This article was published more than a year ago. Some information may no longer be current.
WRITTEN BY
SHARE
Robinhood Responds to SEC’s Wells Notice
Retail trading platform Robinhood Markets revealed Monday that it has received a Wells notice from the U.S. Securities and Exchange Commission (SEC) regarding its crypto business. This indicates that the securities regulator is planning to bring enforcement action against the company.
The CEO of Robinhood, Vlad Tenev, took to social media platform X to share his thoughts and plan following the notice. “Over the last three years, we’ve reached a state of regulatory onslaught that is harmful to American companies and consumers. The SEC’s continued attack on crypto, coupled with recent rule proposals like the one related to predictive data analytics, mark yet another improper attempt by the administrative state to stifle innovation,” the executive stated, adding:
While we strive to maintain positive and productive relationships with our regulators, if necessary we will use our resources to contest this matter in the courts, with the intent of both defending our crypto business and establishing regulatory clarity in the United States for the benefit of our customers.
The SEC has taken an enforcement-centric approach in regulating the cryptocurrency industry, contending that the majority of crypto tokens qualify as securities and must adhere to its regulations. Meanwhile, crypto firms have accused the regulator of exceeding its authority.
“We firmly believe that the assets listed on our platform are not securities and we look forward to engaging with the SEC to make clear just how weak any case against Robinhood Crypto would be,” Dan Gallagher, chief legal, compliance and corporate affairs officer at Robinhood, said Monday.
In recent legal actions, the SEC has filed lawsuits against multiple crypto firms, including Coinbase. Responding to Tenev’s post, Coinbase CEO Brian Armstrong wrote on X:
The courts will help get clarity — but the right solution longer term is we need to elect pro- crypto candidates.
What do you think about Robinhood Markets planning to fight the SEC in court over crypto? Let us know in the comments section below.
