The SEC Doesn't Seem to be Stopping Suing the Crypto Companies
Hey folks.
Well, it looks like the Securities and Exchange Commission of the United States is not stopping suing cryptocurrency companies. The latest firm to draw the ire of the SEC is Robinhood. It reported receiving a Wells notice, this weekend. An announcement that the securities watchdog is making a case and plans to sue.
The fintech company disclosed that it got the notice from the SEC's enforcement division about suspected securities breaches in an 8-K filing.
Despite their blatantness, it's difficult to be shocked by the SEC's anti-crypto measures at this time. The warning was apparently given by the agency following Robinhood's cooperation with the SEC's subpoenas for its cryptocurrency operations. A Wells notice would be an indication of good faith, but the great majority of these letters result in a lawsuit. In essence, a Wells notice is the accused party's last opportunity to persuade regulators that it did not violate the law.
As Robinhood legal, compliance, and corporate lead Dan Gallagher shared the company has been in direct communication with the Securities and Exchange Commission over the crypto offerings by the firm over the years which is what you would exactly expect from a company that really only dabbles in crypto. Which tokens are considered securities by the Securities and Exchange Commission, it is not clear from the letter, though it is worth to be noted the brokerage proactively delisted many tokens in reaction to previous lawsuits against rival trading companies filed by the SEC.
These days, the SEC devotes an excessive amount of time and resources to bringing legal challenges against cryptocurrency companies of all sizes. Since last November, the government has sued a cryptocurrency company at least once a month; most of these cases go undetected and are settled.
While the Securities and Exchange Commission has had legal victories, it also suffered many losses in the court as well. It is unclear if Robinhood will indeed face legal action, and if so, whether it will launch a vigorous defense on its own, similar to what Coinbase and Consensys did.
Follow @haveyoursay
x.com/itshaveyoursay
Posted Using InLeo Alpha