A leading crypto trade association has criticized the Securities and Exchange Commission (SEC) for issuing a Wells notice to Robinhood Crypto.
The Digital Chamber, in a statement on May 6, expressed strong disappointment and concern over the SEC’s actions, deeming it an example of regulatory overreach. The association emphasized its opposition to the SEC expanding its jurisdiction without congressional authorization, noting that Congress is currently deliberating legislation to clarify regulatory authority over crypto.
To address jurisdictional issues, the Digital Chamber called for immediate legislative action and demanded that SEC Chair Gary Gensler testify before Congress. The association also defended Robinhood, recognizing the firm’s efforts to comply in good faith and register with the SEC.
While not explicitly stating plans to submit an amicus brief in support of Robinhood, the Digital Chamber mentioned its past submissions in similar cases, including Kraken’s case in February. The association criticized the SEC’s enforcement actions, arguing that they could harm new companies and limit investors’ financial autonomy.
Robinhood Crypto recently disclosed in an SEC filing that it received a Wells notice on May 4. Despite the SEC’s intentions to recommend enforcement action, Robinhood stated its intent to challenge the case’s validity based on facts and law, asserting that the assets it deals with are not securities.
The company affirmed that it will continue to offer its crypto-related services despite the SEC’s actions. The Digital Chamber’s statement comes in the midst of ongoing regulatory debates surrounding digital assets.
