SEC vs Robinhood: a new confrontation

The SEC continues to attack the crypto industry. Robinhood’s trading platform has become a new target. 

The company received information about the commission’s willingness to sue... guess which one? Right, about the illegal securities trade! We were just talking about the SEC’s commitment, and we got another confirmation.

It seems Mr. Gensler has decided to bring to court all the companies providing infrastructure for the crypto trade. However, it is not certain that the Commission will win the trials, the history of the court confrontation is still not in its favor.

A representative of Robinhood said that he was disappointed with the SEC’s actions, and is sure that all their crypto assets are not securities and therefore do not fall under the jurisdiction of the SEC.

The legal situation in the US regarding cryptocurrencies is still uncertain. This is not only due to the absence of specific federal laws, but is also due to the absence of unambiguous judicial decisions and of a party. Court decisions are either not final and can be reviewed or are ambiguous, as is the case with Ripple. Recall that the court decided that the part of Ripple coins given to institutional investors are securities, and those that are traded to the exchange - accordingly, not securities.

In a country with case law, it is essential to obtain a ruling that can be invoked as a precedent. So far, there is no such ruling.

As for the classification of cryptocurrencies as securities, it should be noted that most cryptocurrencies traded on the exchange are not securities. On the other hand, it is possible to create securities on the basis of blockchain, however, such assets are extremely rare.

The outcome of the current round of litigation is unknown. Formally, the crypto industry has a preferred chance. But there is political expediency, and time will tell who wins.

#SEC #Ripple #Robinhood #blockchain