- Legal expert Jake Chervinsky criticizes the U.S. Securities and Exchange Commission (SEC) for devoting a “grossly disproportionate” amount of resources to crypto regulation.
- The SEC recently sent a Wells Notice to Robinhood’s crypto trading arm, a move Chervinsky considers an abuse of power.
- Major crypto exchanges like Coinbase, Binance, and Kraken have also faced accusations of securities law violations from the SEC.
Legal expert Jake Chervinsky criticizes the SEC for its excessive focus on crypto regulation, arguing that it diverts resources from its primary mission of regulating equity and debt markets.
SEC Accused of Overreach in Crypto Regulation
Jake Chervinsky, chief legal officer at crypto fund Variant, has criticized the U.S. Securities and Exchange Commission (SEC) for its intense focus on crypto regulation. He argues that the regulatory body is allocating a “grossly disproportionate” amount of resources to the crypto sector, detracting from its primary mission of overseeing equity and debt markets.
Robinhood’s Crypto Arm Receives Wells Notice
The SEC recently sent a Wells Notice to Robinhood’s crypto trading arm, a move that has drawn criticism from Chervinsky. A Wells Notice is a warning issued by the SEC indicating its intent to pursue legal action against a company. Chervinsky argues that the SEC is using the Wells Notice process as a scare tactic and is abusing its power.
Major Crypto Exchanges Face SEC Scrutiny
Last month, Uniswap Labs also received a Wells Notice from the SEC. Furthermore, the regulatory body has accused major crypto exchanges Coinbase, Binance, and Kraken of violating securities laws, launching lawsuits against all three last year.
Conclusion
As the SEC continues to intensify its focus on the crypto sector, industry players like Chervinsky argue that this is a misallocation of resources. The debate over the appropriate level of regulation for the burgeoning crypto market is likely to continue as the sector evolves.
