Robinhood executives say that the proposal of a single digital asset regulator is stupid

Dan Gallagher, Robinhood’s chief legal officer, said at a meeting on Wednesday that the idea of ​​creating a new digital asset regulator was “just stupid.”

Robinhood is a popular commission-free trading application that provides digital assets. Competitor crypto asset exchange Coinbase proposed the idea of ​​a new regulatory agency in October.

Gallagher Tell Participants at the Georgetown University Financial Market Quality Conference felt that adding additional institutions to the “Washington Alphabet Soup” “doesn’t make sense.”

He went on to say that trying to transfer power from agencies such as the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to another regulatory agency is “one of the stupidest ideas I have heard in this field in a long time. one. .”

Gallagher previously served as a member of the Securities and Exchange Commission during the Obama administration. He spoke at the conference as part of the Digital Asset Future Group.

Although he did not specifically mention Coinbase, the criticism is implicit. October 14th, Coinbase proposes to establish a new federal regulatory agency. Coinbase Chief Policy Officer Faryar Shirzad wrote:

“In order to avoid decentralized and inconsistent supervision of these unique and concurrent innovations, the responsibility of the digital asset market should be assigned to a single federal regulatory agency.”

Gallagher said that Robinhood has adopted a more conservative approach than Coinbase to avoid falling into a regulatory dilemma. Coinbase supports 51 different cryptocurrencies, while Robinhood only supports 7.

“We must be very careful and thoughtful,” he said. “If by the next day some regulators call them securities, you can’t just accept new tokens.”

Currently, the digital asset space is monitored by many government agencies, including the US Securities and Exchange Commission and the Commodity Futures Trading Commission. The SEC is responsible for the supervision of stocks and stocks and other securities.It is still a hot topic Do many cryptocurrencies count as securities or commodities.

When describing the current regulatory environment for digital asset exchanges, Gallagher said: “This is a very tense situation, and it does require regulatory clarity that we have not yet seen.”

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“You can’t rush to do the most meaningful things. You have to accept the current regulators’ views on this new technology.”

Gallagher suggested that the US Securities and Exchange Commission, the Commodity Futures Trading Commission, and the US Financial Industry Regulatory Authority “create a system with existing powers that is light enough and recognizes the benefits of technology, rather than creating an additional regulatory agency. “

“You have to consider the entities in the regulatory framework. The framework allows companies, companies, businesses, and individuals to enter a market that is sometimes securities and sometimes not. Sometimes it’s a commodity, sometimes it’s not. Right? Don’t worry about something that will happen afterwards. problem.”

October 27, Rostin Behnam, Acting Chairman of CFTC In his confirmation hearing, he suggested that the agency’s mission is to supervise 60% of the digital asset market as the “main policeman of the beat.”