Lawmakers Criticize Gary Gensler Amid Robinhood Wells Notice, Coinbase Extends Support

Popular trading platform Robinhood received strong support from US lawmakers after the U.S. SEC slapped a Wells notice for its crypto business division. Lawmakers have slammed SEC Chair Gary Gensler for going hammer and tongs after every company that seeks to offer cryptocurrency services.

Lawmakers Slam SEC Chair Over Robinhood Notice

Speaking on the development, House Majority Whip Tom Emmer stated: “These Wells notices seem to be Gary Gensler’s desperate, last-ditch attempts to intimidate and antagonize digital asset innovators.”

Congressman John Rose criticized the Securities and Exchange Commission (SEC) for what he sees as overreach in its actions against Robinhood. He asserts that the SEC’s issuance of a Wells Notice, a preliminary step to enforcement action, goes beyond its role of safeguarding investors and ensuring fair markets.

Rose emphasized his support for the FIT for the 21st Century Act, which aims to bring clarity to regulatory oversight in the financial technology sector. He argues that such legislation would prevent regulators like SEC Chairman Gary Gensler from diverting attention from investor protection to hindering innovation.

The @SECgov exceeded its mandate to protect investors and maintain fair, orderly markets by issuing a Wells Notice to @RobinhoodApp, a precursor to enforcement action.
 
I'm proud to help lead the effort to provide clarity by passing the FIT for the 21st Century Act so that rogue…

— Congressman John Rose (@RepJohnRose) May 6, 2024

Crypto Market Players Extend Support

Bill Morgan commented on the current situation regarding Wells Notices issued to crypto companies by the Securities and Exchange Commission (SEC). He noted that some observers, who lean towards supporting the SEC, argue that these crypto companies are deviating from the typical response to a Wells Notice.

Instead, they are using the opportunity to publicly criticize the SEC. Morgan questioned whether this strategy is wise, suggesting that it could exacerbate tensions between the crypto industry and the SEC. He raised the possibility of a lasting conflict between the two entities.

Responding to Robinhood CEO Vlad Tenev’s message on X, Coinbase CEO Brian Armstrong. “The courts will help get clarity – but the right solution in the long term is we need to elect pro-crypto candidates,” he wrote.

Welcome to the club – you're in good company 🙂

The courts will help get clarity – but the right solution longer term is we need to elect pro-crypto candidates. This is why Coinbase has supported Fairshake superpac, and https://t.co/1YyvPQemqk.

Hope y'all can join us! https://t.co/TONaXX2vlv

— Brian Armstrong (@brian_armstrong) May 7, 2024

Vlad Tenev stated that they intend to utilize their resources to challenge this issue in court. Their aim is twofold: to safeguard their crypto business and to establish regulatory clarity in the United States for the benefit of their customers. It seems that the crypto community will soon join hands together while dealing with regulatory matters.