John Rose, a US Representative, condemns the SEC’s actions against Robinhood, accusing the agency of overstepping its bounds and hindering innovation.

• Congressman John Rose criticizes SEC and its Chair, Gary Gensler, as “rogue regulators.”
• SEC under scrutiny for threatening enforcement action against Robinhood’s crypto arm.
• Jake Chervinsky of Variant accuses SEC of misusing Wells Notices as a scare tactic in crypto regulation.

In a recent statement, Congressman John Rose from Tennessee’s Sixth Congressional District lambasted the US Securities and Exchange Commission (SEC), labeling them as “rogue regulators.” Rose contends that the SEC, particularly under the leadership of Chair Gary Gensler, has overstepped its mandate by targeting Robinhood with a Wells Notice, a precursor to enforcement action. Instead, Rose argues, the SEC should focus on investor protection and foster innovation within financial markets. He pledges support for legislation like the FIT for the 21st Century Act to bring clarity and rein in what he perceives as regulatory overreach.

Criticism Mounts Against SEC’s Crypto Focus

Jake Chervinsky, Chief Legal Officer at Variant, echoes Rose’s sentiments, criticizing the SEC’s increased scrutiny of the crypto industry. Chervinsky accuses the SEC of using Wells Notices as a scare tactic to pressure companies, noting the agency’s disproportionate focus on crypto regulation over traditional equity and debt markets. He warns against diverting taxpayer resources away from the SEC’s core responsibilities in pursuit of crypto-related enforcement actions.