Earlier today, Daniel M. Gallagher, a former SEC commissioner and current Chief Legal Officer of Robinhood Markets, presented his testimony before the United States House of Representatives’ House Financial Services subcommittee on digital assets, financial technology, and inclusion. During his testimony, Gallagher emphasized that the current commissioners of the US SEC have been making their cryptocurrency-related decisions based on political impact rather than regulatory clarity.
Robinhood Wrongly Accused by US SEC
🚨NEW: Powerful testimony for today’s @FinancialCmte hearing with lots of ground covered from a former @SECGov commissioner now serving as @RobinhoodApp’s Chief Legal Officer: Dan Gallagher. Particularly interesting was his description of the efforts Robinhood went to attempt…— Eleanor Terrett (@EleanorTerrett) September 18, 2024
According to Gallagher, Robinhood Crypto has been operating through regulated means to offer digital asset trading services in more than 50 states. He highlighted that the US SEC has been reluctant to issue a provisional regulatory regime for crypto assets before Congress finalizes the legislation process. As a result, he informed the committee that the SEC’s approach has forced blockchain technology to thrive in overseas markets while the United States lags behind.
“The current commission’s ‘scorched earth’ approach to regulating cryptocurrencies has real-world consequences. Regulation by enforcement is detrimental to American consumers who seek greater access to digital assets and stifles innovation in the blockchain and digital asset industries,” Gallagher noted.
What’s at Stake
Ahead of the highly contested U.S. 2024 election, the issue of cryptocurrency has become a significant topic, as more than 50 million Americans are invested in the Web3 space. Although the crypto topic did not emerge in the recent presidential debate, former President Donald Trump has promised to make the United States the headquarters for cryptocurrency and Web3 innovation.
Furthermore, the Trump family’s related Web3 project, World Liberty Financial (WLFI), is about to launch its lending business in the near term. The project is convinced that regulatory policies could become even more stringent towards cryptocurrencies if the Democrats win the upcoming election.
In conclusion, Gallagher’s testimony underscores the urgent need for clear and supportive regulatory frameworks for cryptocurrencies in the United States. This will not only foster innovation but also ensure that the country remains competitive in the rapidly evolving digital asset landscape.
