In a scathing rebuke of regulatory actions, the Digital Chamber, a prominent digital asset sector trade association, has criticized the U.S. Securities and Exchange Commission (SEC) for its recent issuance of a Wells notice to Robinhood Crypto.
In a statement released on May 6th, the Digital Chamber expressed “profound disappointment and concern” over the SEC’s move, labeling it as an instance of regulatory overreach. The association emphasized its staunch opposition to the SEC, alleging an expansion of regulatory jurisdiction without proper congressional authorization.
Highlighting the ongoing legislative discussions regarding cryptocurrency regulations, the Digital Chamber called for urgent legislative intervention to address jurisdictional uncertainties. It demanded that SEC Chairman Gary Gensler appear before Congress to provide clarity on the matter.
Backing Robinhood, the Digital Chamber commended the company for its purported efforts towards compliance and attempts to register with the SEC. It pledged its support to Robinhood Crypto and other affected entities in seeking a resolution that safeguards their operational freedom and fosters innovation.
While refraining from explicitly stating its intent to file an amicus brief in support of Robinhood, the Digital Chamber referenced its previous actions, citing a February filing in favor of crypto exchange Kraken.
Moreover, the Digital Chamber criticized the SEC’s enforcement actions as detrimental to investor protection and detrimental to the growth of emerging companies. It argued that aggressive regulatory measures impede investors’ ability to make independent financial decisions.
The issuance of a Wells notice to Robinhood Crypto, disclosed by the company on May 4th, adds to its regulatory challenges amid heightened scrutiny of the crypto market by U.S. authorities.
Legal experts have characterized the ongoing issuance of Wells Notices to companies like Robinhood, Uniswap, and Consensys as a “carpet bombing campaign” against the crypto sector. They caution that such an approach may exceed the SEC’s regulatory authority and pose significant operational and legal hurdles for affected entities.
Meanwhile, British fintech firm Revolut has commenced the phased launch of its crypto exchange, Revolut X, signaling a strategic shift towards cryptocurrency initiatives.
Initial reports suggest that Revolut X, accessible exclusively to professional traders, offers seamless fiat-to-crypto conversions and robust security features. With zero maker fees and a nominal 0.09% fee for takers, the exchange aims to attract traders with real-time trading capabilities and advanced analytical tools.
Revolut’s foray into cryptocurrency trading underscores the growing integration of digital assets into mainstream financial services, reflecting the evolving landscape of the global financial industry.
