The CEO of common retail buying and selling platform Robinhood says his agency and the U.S. Securities and Change Fee (SEC) had been engaged in discussions earlier than the regulator issued a Wells Discover.
In a brand new interview on CNBC, Vlad Tenev says that Robinhood met with the SEC a number of instances to deal with points with current securities legal guidelines and regulatory frameworks that don’t account for crypto belongings earlier than the regulatory physique gave any discover that it deliberate to take enforcement actions.
“We tried to create what’s referred to as the particular function broker-dealer for the aim of transacting crypto belongings. We truly got here in good religion to fulfill with the SEC. I believe we met with them 16 instances and, sadly, that was not reciprocated.”
Tenev says the securities watchdog is just not serious about pursuing discussions in regards to the topic.
“It’s laborious to impute the reasoning behind that, however they instructed us they didn’t need to preserve assembly about it and they didn’t see a path towards it.”
He says the SEC has the ability to deal with crypto restrictions however the regulator merely refuses to make modifications.
“The SEC has the flexibility to alter the principles to permit for brokers to accommodate crypto belongings and they don’t appear intent on doing that. Fairly they’re continuing with regulation by enforcement and that’s disappointing.”
Tenev beforehand mentioned that Robinhood is ready to contest the SEC’s expenses in court docket if the authorized motion pushes by. He now explains why the buying and selling platform is taking a stand in opposition to the regulator.
“I didn’t need to need to get into this case however we now have to defend ourselves and advocate for our clients. We do consider that crypto belongings have gotten increasingly more vital and it could not be acceptable for us to not have Individuals have entry to them.”
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