US legislators fervently supported Robinhood after the SEC’s Wells warning on its cryptocurrency business. Lawmakers criticized SEC Chair Gary Gensler’s actions.
Lawmakers Take Issue With SEC Chair’s Robinhood Notice
House Majority Whip Tom Emmer remarked on the situation, suggesting that the Wells notices were a desperate move by Gary Gensler. Congressman John Rose also weighed in, criticizing the SEC for its actions against Robinhood. He argued that the SEC overstepped its bounds in issuing a Wells Notice. Additionally, Emmer implied that the notices were aimed at intimidating digital asset innovators. Rose’s criticism suggests a broader concern about the SEC’s approach to regulation.
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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Players in the Crypto Market Offer Support
Bill Morgan spoke on the current scenario of Wells Notices issued by the Securities and Exchange Commission (SEC) to crypto firms. He pointed out that some observers—who err on the side of the SEC—claim that these cryptocurrency companies are acting differently from how they usually react to a Wells Notice.
Instead, they are taking advantage of the occasion to attack the SEC openly. Morgan questioned whether this method is wise, arguing that it could aggravate tensions between the crypto business and the SEC. He brought up the prospect of a protracted struggle between the two entities.
Responding to Robinhood CEO Vlad Tenev’s comment on X, Coinbase CEO Brian Armstrong. He stated, “Electing pro-crypto candidates is the right solution in the long run, but the courts will help get clarity.”
Welcome to the club – you’re in good company 🙂
The courts will help get clarity – but the right solution longer term is we need to elect pro-crypto candidates. This is why Coinbase has supported Fairshake superpac, and https://t.co/1YyvPQemqk.
Hope y’all can join us! https://t.co/TONaXX2vlv
— Brian Armstrong (@brian_armstrong) May 7, 2024
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According to Vlad Tenev, they plan to use their resources to contest this matter in court. They have two goals in mind: protecting their cryptocurrency business and bringing regulatory clarity to the US market for the good of their clients. The cryptocurrency community will soon work together to address regulatory issues.
