Robinhood Crypto, the crypto arm of the giant exchange, announced that the SEC sent it a Wells Notice. The SEC intends to bring an enforcement action against the company for alleged securities violations. The cryptocurrency market was shaken by the impact of this development. Thus, Bitcoin and altcoins began to decline.
SEC sends Wells Notice to cryptocurrency exchange
cryptokoin.comAs you follow from , the specter of the US SEC continues to hover over the cryptocurrency market. Now, brokerage firm Robinhood Markets’ cryptocurrency, Robinhood Crypto, announced that it received a Wells Notice from the SEC on May 4. The exchange said SEC staff has made a preliminary decision to recommend enforcement action against the cryptocurrency for alleged securities violations, according to its Form 8-K filed today. Dan Gallagher, Director of Legal, Compliance and Corporate Affairs, Robinhood Markets, Inc., made the following statement:
After years of good faith attempts with the SEC, we are disappointed that the agency has decided to issue a Wells Notice regarding our US crypto business. We firmly believe that the assets listed on our platform are not securities, and we look forward to meeting with the SEC to make clear how weak any case against Robinhood Crypto would be, both on the facts and the law.
SEC continues to target many exchanges and tokens
Last year, Robinhood Markets said it received an investigative subpoena from the SEC regarding its cryptocurrency listings. Additionally, last month, decentralized crypto exchange Uniswap received a Wells Notice from the SEC. “It has been clear for some time that the SEC has decided to focus on attacking long-time good actors like Uniswap and Coinbase, rather than working to create clear and informed rules,” Uniswap founder Hayden Adams said.
Ethereum development studio Consensys also received a Wells Notice from the SEC in the same month. Consensys later sued the SEC. In this regard, he said that regulating Ethereum as a security would jeopardize the US’s ability to use Ethereum and other Blockchains. “The implications of this will extend far beyond digital asset trading,” Consensys said in a statement at the time. “It will also jeopardize the future of the countless new innovations, products, and U.S. jobs that this next-generation internet will create,” he said.
How did the market react?
The cryptocurrency market started the new week positively. Leading crypto Bitcoin rose to $65,400 during the day. However, it fell to $63,600 due to the impact of the news that put pressure on the market. The SEC’s move also had a negative impact on the market overall. Many altcoins have entered the red zone in recent hours.
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