Digital asset legal expert Jake Chervinsky thinks the U.S. Securities and Exchange Commission (SEC) is allocating a “grossly disproportionate” amount of resources toward regulating crypto.
Chervinsky, the chief legal officer at the crypto fund Variant, blasted the SEC for recently sending out a Wells Notice to Robinhood’s crypto trading arm.
A Wells Notice is a warning issued by the SEC that indicates the regulator is planning to pursue legal action against a company.
Chervinsky argues that the SEC is abusing its power.
“The number [of Wells Notices] they’ve sent about crypto in recent months is astonishing. It’s hard to imagine that they would (or could) bring so many enforcement actions at once. It seems like they’re abusing the Wells process as a scare tactic now.
The SEC allocates a grossly disproportionate amount of its resources to crypto, given that its actual purpose is to regulate equity and debt markets. Every minute and taxpayer dollar spent on crypto is one not spent on the real mission that Congress created the SEC to pursue.”
Last month, Uniswap Labs received a Wells Notice from the SEC. The regulator has also accused Coinbase, Binance and Kraken of violating securities laws, launching lawsuits against all three exchanges last year.
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