Robinhood CEO Criticizes ‘Regulatory Onslaught’ on Crypto US, Pledges to Challenge SEC
Robinhood Markets, a prominent retail trading platform, announced its intention on May 7 to challenge the US Securities and Exchange Commission (SEC) in court following allegations of securities violations.
The firm disclosed that its Robinhood Crypto had received a Wells Notice from the SEC over the weekend, indicating that charges could be levied against Robinhood upon the conclusion of an investigation. CEO and co-founder Vlad Tenev revealed the company’s stance shortly after receiving a Wells Notice from the securities regulator.
Expressing his discontent, Tenev took to X on Monday to denounce the SEC’s “continued attack on crypto.” He characterized the regulatory actions as part of a broader “regulatory onslaught” that, in his view, stifles innovation and handicaps American firms and investors.
According to the filing , the SEC’s investigation into Robinhood’s crypto business, including its cryptocurrency listings, custody, and platform operations, has prompted concerns about possible violations of Sections 15(a) and 17A of the Securities Exchange Act of 1934.
The potential enforcement action against Robinhood could involve civil injunctive measures, public administrative proceedings, and cease-and-desist proceedings, seeking remedies such as injunctions, disgorgement, civil money penalties, and activity limitations.
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…
— Vlad Tenev (@vladtenev) May 6, 2024
Following the SEC’s lawsuits against Binance and Coinbase last year, Robinhood Crypto
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