Brokerage companies claim cryptocurrency is not a security.
The Securities and Exchange Commission (SEC) sent a “Wells notice” to Robinhood, a retailer securities broker. The document warned of a pending enforcement action from the agency, which could result in a lawsuit being filed by the government. The brokerage company has claimed that crypto is not a security.
SEC Chair Gary Gensler has been opposed to cryptocurrency use in the United States, saying that it is used to bypass federal financial regulations. However, cryptocurrency companies maintain that the SEC should change regulations to better guide the use of the new financial technology instead of seeking to enforce inapplicable law against companies offering it.
“We firmly believe that the assets listed on our platform are not securities and we look forward to engaging with the SEC to make clear just how weak any case against Robinhood Crypto would be on both the facts and the law,” said Dan Gallagher, Robinhood’s chief legal officer.
As the Lord Leads, Pray with Us…
- For Chair Gensler and members of the SEC to be discerning as they seek to apply existing security regulations to cryptocurrency.
- For U.S. officials to receive God’s direction regarding the enforcement of federal financial laws.
Sources: The Hill, Market Watch
