In yet another soap opera about the regulatory crackdown on the cryptocurrency industry in the US, exchange Robinhood recently received a Wells warning from the Securities and Exchange Commission (SEC). The notice sent on May 4 means that Agency officials will recommend that the SEC take enforcement action against Robinhood.

The trading platform expressed its clear disappointment with the regulator’s decision, highlighting its efforts to seek regulatory clarity, as well as highlighting that it believes that the assets listed on the platform are not securities.

Despite the company’s efforts, the SEC issued the Wells Notice, raising some concerns regarding Robinhood’s U.S. cryptocurrency business.

Dan Gallagher, director of legal, compliance and corporate affairs at Robinhood Markets, spoke out following the SEC’s notice, expressing his disappointment with the SEC’s decision. “After years of good faith attempts to work with the SEC to achieve regulatory clarity, including our well-known ‘go and register’ attempt, we are disappointed that the agency has decided to issue a Wells Notice related to our U.S. crypto business ,” said Dan Gallagher.

Still on the occasion, Gallagher also highlighted his confidence in Robinhood’s position, emphasizing that the assets listed on its platform are not securities. “We firmly believe that the assets listed on our platform are not securities and look forward to engaging with the SEC to make clear how weak any case against Robinhood Crypto would be on both the facts and the law,” he added.

It is worth remembering that, last month, Uniswap founder Hayden Adams recently revealed that Uniswap Labs has received notice that the Securities and Exchange Commission (SEC) will take legal action against the entity. Uniswap Labs is an organization responsible for developing the eponymous decentralized finance (DeFi) protocol. According to Adams, Uniswap received a notice from Wells on April 10, meaning the organization was formally notified that the SEC will file charges against it.


The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.


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