SEC Wells Notice to Robinhood Crypto continues trend of probes in digital asset industry

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SEC News

Ether,Robinhood,Consensys

The SEC is ratcheting up its purview of the crypto industry, after filing its most recent Wells Notice against Robinhood's crypto arm.

The Securities and Exchange Commission is ratcheting up its purview of the crypto industry after filing a Wells Notice against Robinhood's crypto arm on Monday.

"It's the latest in a series of recent Wells Notices that seem to cover a broad swath of different types of actions, but they all relate to the crypto space," said Gary DeWaal, senior counsel at Katten Muchin Rosenman LLP, in an interview with The Block. "I think it's evidence of continued SEC interest in the crypto space and desire to assert its jurisdiction in areas that, frankly, it's not clear that they have.

Crypto-friendly lawmaker House Majority Whip Tom Emmer, R-Minn., accused the agency on Monday of "regulation by intimidation" in a post on X. Throughout the complaint, Consensys shed light on the SEC's focus on ether and accused the agency of trying to regulate ether as a security, citing an SEC "formal" order to investigate Ethereum a year ago.

Consensys alleged that the SEC views eth is a security in its complaint, but Robinhood and Uniswap have not said whether their probes mentioned ether, said Daniel Davis, formerly general counsel at the Commodity Futures Trading Commission. Davis is also listed as an attorney for BAM Management U.S. Holdings for the case between Binance and the SEC. Davis is now a partner at Katten Muchin Rosenman LLP.

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