Robinhood Crypto Arm Is The Latest To Get A Wells Notice From The SEC

The
Securities
and
Exchange
Commission
(SEC)
filed
a
Wells
Notice
against
Robinhood’s
crypto
arm
on
May
6,
indicating
its
intention
to
take

enforcement
action
against
the
company.

The
regulator
has
accused


Robinhood

Crypto
of
securities
violations
under

“Sections
15(a)
and
17A
of
the
Securities
Exchange
Act
of
1934,”
according
to
a

filing.

Robinhood
“Disappointed,”
Says
SEC
Case
Is
“Weak”

“After
years
of
good
faith
attempts
to
work
with
the
SEC
for
regulatory
clarity
including
our
well-known
attempt
to
‘come
in
and
register,’
we
are
disappointed
that
the
agency
has
decided
to
issue
a
Wells
Notice
related
to
our
U.S.
crypto
business,”
said
Dan
Gallagher,
Robinhood’s
legal,
compliance
and
corporate
lead,
in
a
May
6


statement. 

Robinhood
Chief
Legal
Officer
Dan
Gallagher
on
the
????????
SEC
wells
notice:

“After
years
of
good
faith
attempts
to
work
with
the
SEC
for
regulatory
clarity
including
our
well-known
attempt
to
‘come
in
and
register,’
we
are
disappointed
that
the
agency
has
decided
to
issue
a
Wells…

pic.twitter.com/61WXTPogVI

—
Lior
????????
????????
(@liorsela)

May
6,
2024

“We
firmly
believe
that
the
assets
listed
on
our
platform
are
not
securities,
“
he
added.
Gallagher
said
he
looks
forward
to
engaging
with
the
SEC
to
show
the
regulator
“how
weak
any
case
against
Robinhood
Crypto
would
be
on
both
the
facts
and
the
law.”

SEC
Floods
The
Crypto
Sector
With
Wells
Notices

Wells
Notices
are
preliminary
warnings
sent
to
companies.
They
inform
firms
that
the
SEC
believes
it
has
enough
information
to
bring
an
action
against
a
company. 

Robinhood
becomes
the
latest
crypto
firm
to
receive
such
a
notice
this
year.
MetaMask
Wallet
developer,
Consensys,
and
decentralized
exchange,
Uniswap,
have
disclosed
that
they
also
received
Wells
Notices
from
the
SEC
during
the
last
month.

Today,
Consensys
took
an
important
step
towards
preserving
access
to
ether
and
by
extension
the
Ethereum
blockchain
in
the
U.S.
We
are
suing
the
SEC
and
fighting
back
against
its
overzealous
regulatory
overreach.
You
can
find
more
of
my
thoughts
here:

https://t.co/VmvOsrCxjw…

https://t.co/5IubZo69FW

—
Joseph
Lubin
(@ethereumJoseph)

April
25,
2024

Consensys
went
on
the
offensive
and
sued
the
regulator
last
month
regarding
the
SEC’s
categorization
of
Ethereum.
It
accused
the
SEC
of
an
“unlawful
power
grab”
in
regulating
the
leading
crypto
as
a
security.

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