The CEO of popular retail trading platform Robinhood said his company and the U.S. Securities and Exchange Commission (SEC) were in discussions before the regulator issued the Wells notice.
In a new interview with CNBC, Vlad Tenev said that before regulators issued a notice that they were planning to take enforcement action, Robinhood said that existing securities laws and regulatory frameworks do not take crypto assets into account. He said he has met several times with the SEC to address the issue.
“We tried to create a so-called special purpose broker-dealer for the purpose of trading crypto assets. In fact, we came to meet with the SEC in good faith. We met with them 16 times. Unfortunately, it didn't pay off.”
Tenev said the securities watchdog is not interested in pursuing further discussion on the matter.
“It's hard to speculate on the reasons behind it, but they told us they had no intention of continuing to meet on this matter and couldn't see a path towards it.”
He said the SEC has the authority to address the regulation of cryptocurrencies, but the regulator has simply refused to make changes.
“The SEC has the power to change the rules to allow brokers to accommodate crypto assets, but they don’t seem to have any intention of doing so. Instead, they are moving forward with enforcement regulation, which is unfortunate.”
Tenev previously said Robinhood was prepared to challenge the SEC's charges in court if the lawsuit were forced. He now explains why trading platforms are taking a stand against regulators.
“We never wanted to be in this situation, but we have to protect ourselves and advocate for our customers. It is unacceptable that people cannot access their crypto assets.”
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