Robinhood’s Gallagher Slams SEC’s Crypto Regulation

Earlier today, Daniel M. Gallagher, a former SEC commissioner and the current Chief Legal Officer of Robinhood Markets, testified before the U.S. House of Representatives Financial Services Subcommittee on Digital Assets, Financial Technology, and Inclusion. Gallagher’s testimony sharply criticized the U.S. Securities and Exchange Commission’s (SEC) handling of cryptocurrency regulation, accusing current commissioners of making decisions based on political considerations.

SEC’s Hesitation on Crypto Regulation

Gallagher highlighted that Robinhood Crypto has been operating under regulated frameworks to offer digital asset trading services in over 50 states.

Despite this, the SEC has been reluctant to set up a provisional regulatory regime for cryptocurrencies, preferring to wait for Congress to finalize legislative processes. Gallagher argued that this delay has pushed blockchain technology to succeed in international markets while leaving the U.S. behind.

“The current commission’s ‘scorched earth’ approach to regulating cryptocurrencies has real-world consequences. Regulation by enforcement is bad for American consumers who want greater access to digital assets, bad for innovation in the blockchain and digital asset industries.”

What’s at Stake

As the U.S. 2024 election nears, cryptocurrency remains a significant issue, with over 50 million Americans invested in Web3 technologies.

Although the recent presidential debate didn’t address crypto, former President Donald Trump has pledged to make the U.S. a global leader in crypto and Web3. Additionally, Trump’s family’s Web3 project, World Liberty Financial (WLFI), is set to launch its lending business soon. Trump has also suggested that if the Democrats win the election, the regulatory environment for crypto might become even stricter.

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Are you concerned about the SEC’s delay in setting crypto regulations?