The CEO of popular retail trading platform Robinhood says his company and the US Securities and Exchange Commission (SEC) were in discussions before the regulator issued a Wells Notice.
In a new interview on CNBC, Vlad Tenev says Robinhood met with the SEC several times to address issues with existing securities laws and regulatory frameworks that do not consider crypto assets before the regulatory body gave any notice that it intended to take enforcement action.
“We tried to establish a so-called special purpose broker-dealer for the purpose of trading crypto assets. We actually came in good faith to meet with the SEC. I think we met them sixteen times, but unfortunately that was not reciprocated.”
Tenev says the securities watchdog is not interested in discussions on this topic.
“It’s hard to pin down the reasoning behind that, but they told us they didn’t want to keep talking about it and they didn’t see a path forward.”
He says the SEC has the power to address crypto restrictions, but the regulator simply refuses to make changes.
“The SEC has the ability to change the rules to allow brokers to house crypto assets, and they appear to have no intention of doing so. They are more likely to regulate through enforcement and that is disappointing.”
Tenev previously said Robinhood is prepared to challenge the SEC’s complaint in court if the legal action continues. He now explains why the trading platform is taking a stand against the regulator.
“I didn’t want to be in this situation, but we have to defend ourselves and stand up for our customers. We believe that crypto assets are becoming increasingly important and it would not be acceptable to us if Americans did not have access to them.”
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