The US Securities and Exchange Commission and the SEC have taken action against the cryptocurrency trading platform again! The SEC issued a Wells Notice to Robinhood, which shocked the coin community and frightened Bitcoin to drop by more than $2,000.
The US Securities and Exchange Commission and the SEC have taken action against the cryptocurrency trading platform again! This time it's the turn of the US brokerage firm and cryptocurrency trading platform Robinhood.
On Monday, the news that the SEC issued a Wells Notice (Wells Notice) to Robinhood triggered an earthquake in the coin industry. Bitcoin jumped directly from $65,500 to around 63,200, and even Robinhood's stock price fell 2.5% at one point.
Over the past two years, the SEC has continued to tighten cryptocurrency regulations, leaving investors in the coin industry disheartened. The SEC has successively initiated civil lawsuits against cryptocurrency trading platforms such as FTX, Binance, and Coindesk, and has issued more than 5 billion US dollars in fines. It seems that Robinhood will not escape the heist this time, as civil lawsuits will soon follow once Wells notices are delivered.
According to legal documents, the SEC issued this notice on May 4, which mainly targets Robinhood's cryptocurrency listing and escrow business, in violation of Sections 15 (a) and 17A of the US Securities and Exchange Act of 1934 (as amended).
Robin Hood's chief legal counsel Dan Gallagher said, “We are convinced that the assets listed on the Robinhood platform are not securities, and look forward to communicating with the SEC to clearly show that any case against Robinhood cryptocurrency is factually and legally untenable.”
Gallagher told Robinhood's customers that Wells notifications will not affect related accounts or services, and Robinhood's cryptocurrency business will continue to exist.
Issuing Wells notices to cryptocurrency platforms seems to have become the foundation for the SEC. Variant's chief legal officer Jake Chervinsky pointed out that the SEC now appears to be misusing Wells notices as a means of intimidation.
“The number of notices issued by the SEC against cryptocurrency platforms in recent months is shocking. It's hard to imagine them being able to initiate so many enforcement actions at the same time. The SEC has invested significant resources into the crypto sector while ignoring its true mission — to regulate the stock and bond markets.”