As stated by Dan Gallagher, Chief Legal Officer at Robinhood, “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.”
After Binance, Coinbase, and Uniswap, Robinhood has emerged as the latest crypto exchange to receive a Wells notice from the US Securities and Exchange Commission (SEC). The notice has prompted backlash from the crypto community, with many labeling it as scare tactics by regulators.
In a recent court filing, Robinhood disclosed the regulatory body has recommended enforcement action against the company. This move could result in civil litigation, monetary penalties, and constraints on business operations.
In response, Robinhood stressed that the firm has always sought to comply with the regulatory framework set by the SEC. The exchange revealed that it had to remove certain tokens and lending as well as staking products the regulatory body classified as securities. Robinhood also mentioned the difficult choices it had to make to keep up with the agency’s demands, including undergoing the procedure to register a special broker with the SEC.
