K33 Reports : The SEC Continues To Go After Crypto, SEC’s Next Target

On May 10, 2024

The SEC’s pursuit of regulatory action in the crypto space continues as it shifts focus to ConsenSys, following recent actions against platforms like Robinhood and Uniswap. However, the crypto community is now speculating about who the SEC will target next in its regulatory efforts. This trend highlights growing concerns within the crypto space about regulatory oversight and its potential impact on key industry players

Crypto Firms On SEC’s Radar

K33 reports reveal that Robinhood Crypto, the cryptocurrency arm of the popular trading app Robinhood, received a Wells Notice from the U.S. Securities and Exchange Commission (SEC) on May 4. A Wells Notice is typically issued by the SEC when they intend to pursue charges against a company, outlining the alleged violations.

The SEC’s focus on Robinhood Crypto likely revolves around claims that the platform operated as an unlicensed securities brokerage, a violation under SEC regulations. Meanwhile, Robinhood wasn’t the only company to receive a Wells Notice from the SEC; two other firms were also added to the list.

SEC’s Allegation on Uniswap’s

Uniswap’s Chief Operations Officer, Mary Catherine Lader, revealed that the Wells Notice focuses on Uniswap’s alleged operation as an unregistered securities broker and exchange. The extent of the allegations concerning Uniswap’s governance token, UNI, remains unclear.

In response, Uniswap’s CEO, Hayden Adams, declared readiness to challenge any SEC enforcement actions. He expressed confidence in the legality of their offerings, stating that their work aligns with regulatory standards and is poised to leave a positive mark on history.

Today @Uniswap Labs received a Wells notice from the SEC.
I’m not surprised. Just annoyed, disappointed, and ready to fight.
I am confident that the products we offer are legal and that our work is on the right side of history. But it’s been clear for a while that rather than…
— hayden.eth 🦄 (@haydenzadams) April 10, 2024

ConsenSys Receives Wells Notice

Secondly in April, ConsenSys, the firm behind the widely-used Metamask wallet, disclosed receipt of a Wells notice from the SEC, indicating impending enforcement action.

Joseph Lubin, the company’s founder and CEO, dismissed the SEC’s claims as “preposterous.” He clarified that the SEC alleges Metamask’s wallet acts as a broker-dealer, a regulated securities market intermediary.

As the SEC’s investigations into these companies unfold, the outcomes will likely have broader implications for the regulatory landscape of the cryptocurrency industry.