Robinhood's CLO Criticizes SEC's 'Scorched Earth' Approach to Crypto

  • Dan Gallagher criticizes the SEC’s unclear regulatory approach to cryptocurrency regulation.

  • Robinhood held over 12 meetings with the SEC but received a Wells notice despite efforts.

  • Gallagher calls for a clear, comprehensive regulatory framework to support U.S. innovation.

Dan Gallagher, Robinhood’s Chief Legal Officer and a former SEC Commissioner, testified before the U.S. House Financial Services Subcommittee on Digital Assets. Wherein, he criticized the “scorched earth” approach the SEC has on cryptocurrencies.

Gallagher disclosed that Robinhood had over a dozen meetings with the SEC in an effort to register, but still resulted in a Wells notice from the enforcement division.

According to Gallagher, Robinhood to be registered as a digital asset broker-dealer under the SEC. Robinhood claimed to have dedicated efforts and resources to implement the regulations set by the Commission. They spent over a year seeking guidance from the SEC. However, the SEC dismissed all of these dedicated efforts; instead, sent a Wells notice to Robinhood.

Gallagher said that the agency had failed to provide feedback to companies and therefore clarity on the matter…

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