The Digital Chamber, a crypto trade association, condemned the SEC for submitting a Wells notice to Robinhood Crypto.In a statement on May 6, the association expressed “profound disappointment and concern” over the action and called it an example of regulatory overreach.The Digital Chamber emphasized its ongoing opposition to the SEC extending its reach without authorization from Congress. It noted that Congress is “actively deliberating legislation” to define regulatory jurisdiction over crypto and said the SEC has violated the process.To address jurisdictional issues, the Digital Chamber urged for “immediate legislative action” and said SEC Chair Gary Gensler should be compelled to testify before Congress.The Digital Chamber defended Robinhood, acknowledging the firm’s self-proclaimed good-faith compliance efforts and attempts to register with the SEC.The association said:“The Digital Chamber stands ready to support Robinhood Crypto and other affected companies… “It did not explicitly describe plans to submit an amicus brief in defense of Robinhood but said it had done so in other cases in the past, highlighting its submission in Kraken’s case in February.The Digital Chamber further asserted the SEC’s actions are at odds with the regulator’s investor protection mandate, noting that aggressive enforcement harms new companies and reduces investors’ ability to make autonomous financial decisions.Robinhood disclosed in a May 4 SEC filing that its subsidiary, Robinhood Crypto, received a Wells notice. It commented further on the development in a May 6 post.The Wells notice indicates the SEC intends to recommend enforcement action against Robinhood. However, the SEC has not yet filed a lawsuit.Robinhood nevertheless described how it might oppose the SEC’s intentions. The company said it intends to engage with the SEC to show the weakness of any case in terms of the facts and the law. It also asserted the assets it lists are not securities.Robinhood said it will continue to offer its crypto-related services.Before transitioning to crypto writing in 2018, Mike studied library and information sciences. Currently, he resides on Canada’s West Coast.AJ, a passionate journalist since Yemen’s 2011 Arab Spring, has honed his skills worldwide for over a decade. Specializing in financial journalism, he now focuses on crypto reporting. Join our X community for real-time crypto news and expert insights.The current uncertainty in the market is being fueled by the impending Federal Open Market Committee’s (FOMC) decision on cutting interest rates.Embracing Bitcoin mining could be pivotal in Trump’s envisioned energy strategy.Courts dismissed the case without prejudice, leaving Musk an option to refile the case at a later date.The S-1 filing follows the SEC’s approval of NYSE Arca’s proposed rule change on behalf of ProShares.CryptoSlate’s latest market report dives deep into the effects corporate Bitcoin purchases have on the market.Disclaimer: Our writers’ opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.
