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US Congressman criticises SEC Chair over SEC’s potential legal action against Robinhood (HOOD)

US Congressman criticises SEC Chair over SEC's potential legal action against Robinhood (HOOD) 2

The US SEC chairman Gary Gensler is facing huge criticism from the crypto advocates over their planning of legal action against the stock & crypto trading platform Robinhood.

Robinhood is a popular crypto & stock trading platform among the US investors. Since the beginning, this firm provided only limited numbers of crypto assets trading, to comply with the Securities Act strictly. In the last couple of years, Robinhood delisted all those crypto assets from the platform, which were labelled as unregistered security tokens in lawsuits or legal notices from the United States Securities and Exchange Commission (SEC). 

Despite all possible best efforts of compliance, Robinhood received Wells notice from the SEC body over its crypto business. 

In an 8-K filing, the fintech firm revealed it received the letter from the SEC’s enforcement division for alleged securities violations.

Robinhood CEO Vlad Tenev said that the Crypto regulatory environment in the United States is detrimental to both American companies and consumers.

Vlad pointed out that the SEC keeps closely watching the cryptocurrency industry. He also noted new rules being suggested, like those about predictive data analytics, which he sees as more attempts by government agencies to slow down innovation.

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

In response to the SEC’s Wells notice against the Robinhood crypto services, John Rose, a US Representative serving Tennessee’s Sixth Congressional District, criticised the US SEC chairman Gary Gensler.

He said that the SEC body went too far by giving Robinhood a warning against the company’s crypto business.

Furthermore, the US congressman said that he is working on a law called the FIT for the 21st Century Act to make things clearer & he is confident that it will stop regulators like Gary Gensler from straying from their job of protecting investors and messing with innovation.

The @SECgov exceeded its mandate to protect investors and maintain fair, orderly markets by issuing a Wells Notice to @RobinhoodApp, a precursor to enforcement action.
 
I'm proud to help lead the effort to provide clarity by passing the FIT for the 21st Century Act so that rogue…

— Congressman John Rose (@RepJohnRose) May 6, 2024

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