Digital asset legal expert Jake Chervinsky thinks the US Securities and Exchange Commission (SEC) is devoting a “highly disproportionate” amount of resources to regulating crypto.
Chervinsky, the chief legal officer at crypto fund Variant, blasted the SEC for recently sending a Wells Notice to Robinhood’s crypto trading arm.
A Wells Notice is a warning from the SEC indicating that the regulator intends to take legal action against a company.
Chervinsky argues that the SEC is abusing its power.
“The number [of Wells Notices] they’ve been sending about crypto in recent months is amazing. It’s hard to imagine that they would (or could) take so many enforcement actions at once. It seems they are now using the Wells trial as a scare tactic.
The SEC allocates a very disproportionate share of its resources to crypto, since its very purpose is to regulate cryptocurrencies. equity and debt markets. Every minute and every tax dollar spent on crypto is worth one not spent on the real mission for which Congress created the SEC.”
Last month, Uniswap Labs received a Wells Notice from the SEC. The regulator has also accused Coinbase, Binance and Kraken of violating securities laws and filed lawsuits against all three exchanges last year.
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