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- Bill Morgan, thinks there is a lot of bad blood between the crypto industry and the SEC.
- Morgan thinks the bad blood could degenerate into a permanent feud.
- Jake Chervinsky, Variant’s CLO, has accused the SEC of abusing the Wells process.
Renowned crypto lawyer Bill Morgan thinks there is a lot of bad blood between the crypto industry and the U.S. Securities and Exchange Commission (SEC) that could degenerate into a permanent feud. Morgan made the statement in a post on X, responding to reactions toward the recently issued Wells Notice by the SEC to Robinhood.
Interestingly, some commentators more sympathetic to the SEC say that crypto companies receiving Wells Notices are not acting in a manner that is normally the case with a Wells Notice recipient and are taking the occasion of receipt of a Wells Notice to publicly attack the SEC.… https://t.co/cf1dLwK8Vu— bill morgan (@Belisarius2020) May 7, 2024
According to Morgan, some commentators sympathetic to the SEC are accusing companies receiving Wells Notices from the SEC of not acting appropriately. He noted that the SEC sympathizers believe the affected companies usually result in making public attacks on the SEC.
Notably, Morgan reacted to a post by Jake Chervinsky, the Chief Legal Officer at Variant, who criticized the SEC, accusing them of abusing the Wells process. According to Chervinsky, the SEC has sent an astonishing number of Wells Notices in recent months. He thinks it will be hard for the commission to bring so many enforcement actions over a short period.
Chervinsky also thinks the SEC allocates a grossly disproportionate amount of its resources to crypto, given that its purpose is to regulate equity and debt markets. In his opinion, every minute and taxpayer dollar the SEC spends on crypto is not on the genuine mission that Congress created the SEC to pursue.
On Monday, Robinhood announced it received a Wells Notice from the SEC over crypto-traded tokens on its platform. Addressing the enforcement notice, Dan Gallagher, chief legal, compliance, and corporate affairs officer at Robinhood, explained that the assets listed on its platform are not securities. Furthermore, Gallagher noted that the firm looks forward to engaging with the SEC to make clear that there is no case of wrongdoing against it.
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