Robinhood met with the SEC’s Crypto Process Power, urging clear laws for digital belongings and criticizing the company’s case-by-case litigation strategy.
Robinhood Challenges SEC’s Case-by-Case Crypto Regulation
Robinhood Markets Inc. met with the SEC’s Crypto Process Power on February 19 to advocate for a structured regulatory framework for digital belongings. The assembly addressed key points corresponding to crypto broker-dealer guidelines, staking, and the classification of tokenized belongings.
Executives from Robinhood, together with Normal Counsel Lucas Moskowitz and Deputy Normal Counsel John Markle, argued that the SEC’s reliance on enforcement actions to find out securities standing is inefficient. They cited considerations raised by U.S. District Court docket Decide Amy Berman Jackson, who warned that regulating crypto “case by case, coin by coin, courtroom after courtroom” results in confusion and inconsistent outcomes.
Robinhood Requires a Clear Crypto Regulatory Framework
In a letter to the SEC, Robinhood criticized the company’s litigation-driven strategy and urged the fee to make use of its authority below the Securities Trade Act of 1934 to ascertain clear digital asset laws. The corporate proposed a provisional framework that features registration necessities, custody guidelines, client protections, and transaction reporting requirements.
Robinhood’s push for readability aligns with broader trade considerations in regards to the SEC’s enforcement-heavy technique, beforehand criticized in congressional hearings.
SEC Assembly Follows Closure of Robinhood Crypto Investigation
The assembly happened days earlier than Robinhood introduced that the SEC had formally closed its investigation into Robinhood Crypto. The probe examined whether or not the platform’s crypto providers violated securities legal guidelines.
Moreover Robinhood, the SEC’s Crypto Process Power has additionally met with trade leaders, together with MicroStrategy’s Michael Saylor, in addition to representatives from Constancy, Zero Hash, and Fireblocks.
Because the SEC continues shaping its stance on digital belongings, market members and buyers ought to monitor upcoming regulatory developments that might impression the cryptocurrency trade.
