The post Robinhood Strikes Back: SEC’s ‘Scorched Earth’ Crypto Crackdown Unveiled appeared first on Coinpedia Fintech News
Earlier today, Daniel M. Gallagher, a former SEC commissioner and current Chief Legal Officer of Robinhood Markets, appeared for testimony before the United States House of Representatives House Financial Services subcommittee on digital assets, financial technology, and inclusion. In his testimony, Gallagher pointed out that the current commissioners of the US SEC have been making their crypto decisions based on political impact.
Robinhood Wrongly Accused by US SEC
NEW: Powerful testimony for today’s @FinancialCmte hearing with lots of ground covered from a former @SECGov commissioner now serving as @RobinhoodApp’s Chief Legal Officer: Dan Gallagher. Particularly interesting was his description of the efforts Robinhood went to attempt…
— Eleanor Terrett (@EleanorTerrett) September 18, 2024
According to Gallagher, Robinhood Crypto has been operating through regulated means to offer digital assets trading services in more than 50 states. Gallagher highlighted that the US SEC has been reluctant to issue a provisional regulatory regime for crypto assets before Congress finalizes the legislation process.
As a result, he told the committee that the SEC has forced blockchain technology to thrive in overseas markets while the country lags.
“The current commission’s ‘scorched earth’ approach to regulating cryptocurrencies has real-world consequences. Regulation by enforcement is bad for American consumers who want greater access to digital assets, bad for innovation in the blockchain and digital asset industries..,” Gallagher noted.
What’s at Stake
Ahead of the highly contested U.S. 2024 election, the crypto issue has been a major topic, as more than 50 million Americans are invested in the Web3 space.
Although the crypto topic did not emerge in the recent presidential debate, Donald Trump has promised to make the US the headquarters for crypto and web3. Furthermore, the Trump family’s related web3 project World Liberty Financial (WLFI) is about to launch its lending business in the near term and is convinced Gentler will become even more anti-crypto if the Democrats win the election.