Robinhood met with the SEC’s Crypto Task Force, urging clear regulations for digital assets and criticizing the agency’s case-by-case litigation approach.
Robinhood Challenges SEC’s Case-by-Case Crypto Regulation
Robinhood Markets Inc. met with the SEC’s Crypto Task Force on February 19 to advocate for a structured regulatory framework for digital assets. The meeting addressed key issues such as crypto broker-dealer rules, staking, and the classification of tokenized assets.
Executives from Robinhood, including General Counsel Lucas Moskowitz and Deputy General Counsel John Markle, argued that the SEC’s reliance on enforcement actions to determine securities status is inefficient. They cited concerns raised by U.S. District Court Judge Amy Berman Jackson, who warned that regulating crypto “case by case, coin by coin, court after court” leads to confusion and inconsistent outcomes.
Robinhood Calls for a Clear Crypto Regulatory Framework
In a letter to the SEC, Robinhood criticized the agency’s litigation-driven approach and urged the commission to use its authority under the Securities Exchange Act of 1934 to establish clear digital asset regulations. The company proposed a provisional framework that includes registration requirements, custody rules, consumer protections, and transaction reporting standards.
Robinhood’s push for clarity aligns with broader industry concerns about the SEC’s enforcement-heavy strategy, previously criticized in congressional hearings.
SEC Meeting Follows Closure of Robinhood Crypto Investigation
The meeting took place days before Robinhood announced that the SEC had officially closed its investigation into Robinhood Crypto. The probe examined whether the platform’s crypto services violated securities laws.
Besides Robinhood, the SEC’s Crypto Task Force has also met with industry leaders, including MicroStrategy’s Michael Saylor, as well as representatives from Fidelity, Zero Hash, and Fireblocks.
As the SEC continues shaping its stance on digital assets, market participants and investors should monitor upcoming regulatory developments that could impact the cryptocurrency industry.
