Robinhood Claims SEC Dismissed Their Attempts to Register as Crypto Broker

Crypto exchange Robinhood claims its attempts to register with the SEC have been dismissed. SEC Chair has a different story.

Robin Hood with a digital face made out of crypto logos staring at the camera in a digital dark green forest.
  • The SEC dismissed Robinhood’s attempts to register as a crypto broker.
  • Earlier, Coinbase also claimed they attempted to register with the agency. 
  • SEC Chair Gary Gensler rebuked these claims.

Following the SEC’s massive crackdown on Binance and Coinbase, exchanges are firing back. After similar statements from Coinbase, Robinhood claimed that the SEC dismissed their attempts to register as a crypto broker. 

On Tuesday, June 6, Dan Gallagher, Chief Legal Compliance and Corporate Affairs Officer, spoke before the US House Agriculture Committee. Despite his efforts, Gallagher, a former SEC commissioner, stated that he couldn’t guide Robinhood into crypto compliance.

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“When Chair Gensler at the SEC in 2021 said, ‘Come in and register,’ we did,” Gallagher said. “We went through a 16-month process with the SEC staff trying to register a special purpose broker-dealer. And then we were pretty summarily told in March that that process was over, and we would not see any fruits of that effort.”

These statements echo similar complaints by Coinbase, one of the largest exchanges in the US. Paul Grewal, Chief Legal Officer at Coinbase, also gave a statement before the House House Agriculture Committee on Tuesday. 

“When Coinbase has attempted to do just that, to talk about how we could register as a broker-dealer,” he said, “we’re simply dismissed with no response or any counter-proposal or ideas coming back from the SEC,” said Paul Grewal, Coinbase’s chief legal officer. 

On the Flipside

  • SEC Chair Gary Gensler has countered these claims. On June 8, 2023, he insisted that crypto-related companies, including Robinhood, know how to register and should comply with existing regulations. 
  • At the same hearing, Gallagher said that the exchange is considering delisting crypto tokens that the SEC called securities in its lawsuit against Binance.  

Why This Matters

Robinhood and Coinbase’s claims could undermine the SEC’s case against the crypto exchanges in the ongoing lawsuit. 

Read about Gary Gensler’s rebuttal of the claims by Robinhood, Coinbase

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Exchanges Were Warned: SEC Chair Gensler Defends Crypto Crackdown

Read more about why Robinhood may delist a number of crypto assets: 

Robinhood May Delist These Crypto Assets After SEC Crackdown

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

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David Marsanic

David Marsanic is a journalist for DailyCoin who covers the intersection of crypto, traditional finance, and government. He focuses on institutionalized crypto entities like major cryptocurrency exchanges and Solana, breaking down complex topics into easy-to-understand writing. David's prior experience as a business journalist at various crypto and traditional news sites has enabled him to maintain a critical approach to news while adhering to high journalistic integrity standards.