Digital Chamber Criticizes SEC Over Wells Notice Issue to Robinhood Crypto

cryptonews.com:

Crypto trade association Digital Chamber has slammed the US Securities and Exchange Commission (SEC) for issuing a Wells Notice to Robinhood Crypto, calling it an “alarming development.”

The Digital Chamber called this as yet another instance of the regulator’s “unchecked regulatory overreach,” similar to previous ones. The SEC has previously issued Wells Notice to major industry players like Uniswap and Consensys.

A Wells Notice informs recipient that the regulator has concluded investigation against them and plans to file an enforcement action.

The criticism comes after Robinhood’s response statement on Monday, expressing profound disappointment over receiving a Wells Notice, despite strong compliance.

“After years of good faith attempts to work with the SEC for regulatory clarity including our well-known attempt to ‘come in and register,’ we are disappointed that the agency has decided to issue a Wells Notice related to our U.S. crypto business,” Dan Gallagher, Chief Legal Officer at Robinhood stated.

“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 on both the facts and the law.”

The Chamber agreed to Robinhood’s reply, adding that the SEC has chosen a path that significantly undermines innovation and investor protection in the crypto space.

“When Congress is actively deliberating legislation that would define regulatory jurisdictions for digital-assets, the SEC’s actions contradict the legislative process.”

It further said that SEC’s “aggressive stance” has bypassed its investor protection mandate. As a result, the Chamber has urged for immediate legislative action to address such