The U.S. Securities and Exchange Commission (SEC) has filed a new lawsuit against cryptocurrency unit Robinhood.
Legal experts believe the SEC's broad action is improper.
The company expressed disappointment with the Commission's regulatory approach.
Over the past year, the SEC has repeatedly launched regulatory attacks against #cryptocurrency service providers, taking the case to major organizations such as #Binance , Coinbase and #Ripple . The most recent target of the Commission's scrutiny was cryptocurrency trading platform #Robinhood , which recently received a Wells notice as a prelude to potential enforcement action.
However, the Commission's enforcement actions have renewed criticism of the Commission's approach to regulating the industry.
A man sits on a bridge in Japan with a large amount of #XRP .
Hands burn a balloon on Terra Luna.
A planet in space with multiple back accounts.
SEC vs. Robinhood: cryptocurrency 'carpet bombing'
Commenting on the SEC's notice to Robinhood's cryptocurrency unit, Cooley LLP lawyer and former Paradigm executive Rodrigo Silva-Herzog said that the move was the latest in a series of aggressive "carpet bombings" by the Commission against the industry.
Silva-Herzog emphasized that Rohbinhood CEO Dan Gallagher previously served as an SEC commissioner appointed by U. S. President Barack Obama, and current SEC Chairman Gary Gensler was embroiled in a legal battle too big for him to handle. He emphasized that there was a possibility that Rep.
Jake Czerwinski, general counsel for Variant Fund, accused the SEC of using the Wells notices as a scare tactic against cryptocurrency companies; Czerwinski said the number of cryptocurrency notices in recent months has been staggering and wondered why the SEC could enforce so many at once. He said it is questionable how the SEC can conduct so many enforcement actions at the same time.
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