US SEC Chairman Gary Gensler is facing massive criticism from crypto advocates over their planning of legal action against stock and crypto trading platform Robinhood.
Robinhood is a popular crypto and stock trading platform among US investors. Since its inception, this company has only traded a limited number of crypto assets in order to strictly comply with the Securities Act. Over the past few years, Robinhood has removed from the platform all those crypto assets that were labeled as unregistered security tokens in lawsuits or legal notices from the U.S. Securities and Exchange Commission (SEC).
Despite all efforts to meet compliance, Robinhood received a notice from Wells from the SEC agency regarding its crypto activities.
In an 8-K filing, the fintech company revealed that it had received the letter from the SEC’s enforcement division alleging securities law violations.
Robinhood CEO Vlad Tenev said that Crypto regulations in the United States are harmful to both American businesses and consumers.
Vlad pointed out that the SEC is keeping a close eye on the cryptocurrency industry. He also noted that new regulations are being proposed, such as those on predictive data analytics, which he sees as more attempts by government agencies to slow innovation.
In response to the SEC’s Wells post against Robinhood’s crypto services, John Rose, a U.S. representative serving Tennessee’s sixth congressional district, criticized U.S. SEC Chairman Gary Gensler.
He said the SEC body went too far by issuing Robinhood a warning against the company’s crypto activities.
Additionally, the US Congressman said he is working on a bill called the FIT for the 21st Century Act to make things clearer and he is confident this will stop regulators like Gary Gensler from straying from their job of protecting investors protect and tamper with innovation.
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