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Robinhood CEO Discloses SEC Meetings
Robinhood CEO Vlad Tenev unveiled that the financial technology firm engaged with the U.S. Securities and Exchange Commission (SEC) on 16 occasions in the pursuit of registering as a specialized broker-dealer catering to cryptocurrency assets, prior to receiving a Wells Notice from the regulator. In an interview with CNBC Last Call, Tenev expressed that the stock trading platform approached the SEC with sincerity, stating, “I think we met with them 16 times—and unfortunately, that was not reciprocated.” Tenev further elaborated that the SEC conveyed their disinterest in continuing discussions on the matter, asserting lack of a viable path forward. The CEO also expressed difficulty in comprehending the rationale behind the SEC’s decision.
Insight from Robinhood’s Legal Officer
Tenev’s depiction of SEC interactions mirrored remarks made by Robinhood Markets’ Chief Legal, Compliance and Corporate Affairs Officer, Dan Gallagher, during a Congressional testimony last year. Gallagher highlighted that the firm engaged in “over a dozen meetings and calls” with the regulator spanning a year and a half to deliberate on its cryptocurrency business and listing protocols.
“We actually came in good faith to meet with the SEC. I think we met with them 16 times and, unfortunately, that was not reciprocated,” @vladtenev tells @Kr00ney after Robinhood’s crypto arm received a wells notice from the SEC. $HOOD pic.twitter.com/cOGU3BFGpD
— Last Call (@LastCallCNBC) May 8, 2024
SEC Wells Notice for Robinhood Crypto
Last week, Robinhood disclosed that its digital assets division, Robinhood Crypto, had been served with a Wells Notice from the SEC. This notification indicates the regulator’s intent to proceed with civil enforcement action or legal proceedings against the company. This announcement aligns with an increased frequency of regulatory cautions directed at U.S. cryptocurrency enterprises by the SEC, with recent Wells Notices issued to prominent entities such as Consensys and Uniswap Labs.
Tenev, in a conversation with CNBC Last Call, contended that the SEC had chosen a strategy of “regulation via enforcement,” instead of amending regulations to enable brokers to support cryptocurrency assets. He emphasized the necessity to safeguard their interests and advocate for customer accessibility to crypto assets, emphasizing their growing significance in the financial landscape.
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