Robinhood Crypto Gets Wells Notice from US SEC

glad to see the same regulatory agency that snored through the gamestop fiasco has suddenly taken notice of the crypto wing of the same predatory fintech that should have faced a congressional hearing years ago.

Re: Robinhood Crypto Gets Wells Notice from US SEC

#6

Post by ajross » Mon, May 06, 2024, 4:56 PM UTC

iamsam123 wrote: post #3

"Everything is Securities Fraud" - Matt Levine

There is no accusation of fraud here. What seems to be happening is, as with similar enforcement actions, Robinhood is being dinged for trading securities improperly, without ticking off the legal requirements for notification, tracking, authentication, etc...

The idea that crypto assets aren't "securities" and thus not subject to SEC regulation is, and always has been, laughable. Virtually everyone trading these things is doing so to engage in arbitrage of fungible assets to make money. I mean, come on.

Re: Robinhood Crypto Gets Wells Notice from US SEC

#7

Post by siftrics » Mon, May 06, 2024, 5:03 PM UTC

ajross wrote: post #6

iamsam123 wrote: post #3

"Everything is Securities Fraud" - Matt Levine

There is no accusation of fraud here. What seems to be happening is, as with similar enforcement actions, Robinhood is being dinged for trading securities improperly, without ticking off the legal requirements for notification, tracking, authentication, etc... The idea that crypto assets aren't "securities" and thus not subject to SEC regulation is, and always has been, laughable. Virtually everyone trading these thi…

The vast majority of arbitrage of fungible assets happens in commodities, not securities. The SEC regulates securities. The CFTC regulates commodities.

Re: Robinhood Crypto Gets Wells Notice from US SEC

#8

Post by j0hnyl » Mon, May 06, 2024, 5:04 PM UTC

edm0nd wrote: post #2

SEC is a joke. Either nothing will happen at all OR they will get hit with a small fine.

Nothing should happen. Treating crypto tokens as securities is absurd.

Re: Robinhood Crypto Gets Wells Notice from US SEC

#9

Post by jprete » Mon, May 06, 2024, 5:06 PM UTC

siftrics wrote: post #7

ajross wrote: post #6

Earlier quoted context omitted.

There is no accusation of fraud here. What seems to be happening is, as with similar enforcement actions, Robinhood is being dinged for trading securities improperly, without ticking off the legal requirements for notification, tracking, authentication, etc... The idea that crypto assets aren't "securities" and thus not subject to SEC regulation is, and always has been, laughable. Virtually everyone trading these thi…

The vast majority of arbitrage of fungible assets happens in commodities, not securities. The SEC regulates securities. The CFTC regulates commodities.

Ok, but these are clearly not commodities.

Re: Robinhood Crypto Gets Wells Notice from US SEC

#10

Post by financetechbro » Mon, May 06, 2024, 5:06 PM UTC

droptablemain wrote: post #4

Any idea what this could mean for those holding crypto on Robinhood?

I doubt the SEC has a strong case here. I wouldn’t worry about anything for now