- Robinhood stocks dip by 5% amid the SEC’s issuing of a Wells Notice.
- The SEC’s rampage after crypto projects in the US seems relentless.
- Gary Gensler and his team are doubling up against cryptos despite Ripple’s win.
The SEC wreaks havoc in the crypto space once again. In its new quest to hinder innovation, the SEC has intensified its oversight of the crypto sector by issuing a Wells Notice against Robinhood’s crypto division specifically. In response, Robinhood’s stock dipped by 5% immediately after the Wells Notice was issued.
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In detail, the Wells Notice is a precursor to potential enforcement action meaning Robinhood will likely soon face legal challenges. In this case, the action will be in regards to alleged securities violations by Robinhood Crypto, a division of Robinhood Markets.
This move is clearly a part of the SEC’s broader trend of prosecuting several crypto firms which includes Consensys and Uniswap. The latter two received Wells Notices from the SEC last month.
The exact nature of these allegations are yet to be revealed but legal experts are inclined to believe that the SEC is pushing into various aspects of the crypto space. After all, the Wells Notice is direct action of the SEC’s determination to take enforced action upon these crypto businesses and forcing them to defend themselves.
So far, we have seen how the SEC’s Chair Gery Gensler is vehemently against letting cryptocurrencies thrive. His stance on crypto regulation has been a firm one, one of strict belief that all cryptos are securities.
While industry voices have criticized the SEC’s approach and have been calling for more clearer guidelines for years, the entity continues to create legal discord amongst a series of crypto projects.
As of now, only Ripple and XRP seem to have come out strong after a long and brutal battle. Unfortunately, it seems while Ripple is coming out of the storm, several other projects like Coinbase and Robinhood are just beginning to brace themselves.
Meanwhile, Ethreum and ETH) seem to be untouched, adding more fuel to the ETHGate conspiracy. When will the SEC give it a rest and let crypto projects thrive for a greater US and global economy? Only time will tell.
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