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.
Crypto tokens fall into the definition of securities by SEC standards.
Robinhood Crypto Gets Wells Notice from US SEC
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Re: Robinhood Crypto Gets Wells Notice from US SEC
#12Earlier quoted context omitted.
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.
Clearly? What distinguishes them from beanie babies or used concert ticket stubs?
Re: Robinhood Crypto Gets Wells Notice from US SEC
#13Earlier quoted context omitted.
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.
Why not? It is highly litigated and still abundantly unclear whether certain cryptocurrencies are securities or commodities. That's the whole point of these legal battles. If it was clear, they would not be ongoing.
Re: Robinhood Crypto Gets Wells Notice from US SEC
#14Earlier quoted context omitted.
Nothing should happen. Treating crypto tokens as securities is absurd.
Crypto tokens fall into the definition of securities by SEC standards.
Maybe the way to view it would be as a gambling product, with the regulation that casinos encounter.
Though I'm guessing most crypto users wouldn't enjoy that.
Re: Robinhood Crypto Gets Wells Notice from US SEC
#15Re: Robinhood Crypto Gets Wells Notice from US SEC
#16Any idea what this could mean for those holding crypto on Robinhood?
If you have the ability to withdraw to your own custody, I'd recommend it if you're reasonably technically literate (which I'm assuming because you're here).
If you don't have the ability to withdraw it, you have crypto IOU's, which is a layer riskier than actually having the assets already.
Re: Robinhood Crypto Gets Wells Notice from US SEC
#17Any idea what this could mean for those holding crypto on Robinhood?
I don't believe that at this point there are still people who have their cryptos with them. These people already have “most wanted” style documentaries and almost all cryptos forums have in their FAQs “Not your keys, not your coins" warnings.
Re: Robinhood Crypto Gets Wells Notice from US SEC
#18Earlier quoted context omitted.
Nothing should happen. Treating crypto tokens as securities is absurd.
Crypto tokens fall into the definition of securities by SEC standards.
As the ongoing court case with Coinbase shows, though, part of the problem is that the SEC might not be using reasonable standards. It's letting the pitcher call the balls and strikes.
Re: Robinhood Crypto Gets Wells Notice from US SEC
#19Earlier quoted context omitted.
Crypto tokens fall into the definition of securities by SEC standards.
As the ongoing court case with Coinbase shows, though, part of the problem is that the SEC might not be using reasonable standards. It's letting the pitcher call the balls and strikes.
The only reasonable standard the crypto true believers would accept from the US government is that cryptocurrency tokens and derivatives are 100% unregulated and nontaxable by any current or future statute.
Re: Robinhood Crypto Gets Wells Notice from US SEC
#20Earlier 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.
> The vast majority of arbitrage of fungible assets happens in commodities, not securities.
Yeah, I'm gonna say no to that. I don't have numbers but if total trading volume on commodities is anything more than a tiny fraction of stock/derivatives trading on any given day I eat my proverbial hat.
Regardless, "The CFTC needs to sue us, not the SEC" isn't the argument being made by Robinhood either.