US Congressman Criticizes SEC Chair Gensler as "Rogue Regulator" Over Robinhood Actions

US Representative John Rose from Tennessee's Sixth Congressional District has launched scathing criticism against the US Securities and Exchange Commission (SEC), particularly targeting SEC Chair Gary Gensler, whom he labeled a "rogue regulator" in a recent statement on X.

Rose accused the SEC of overstepping its boundaries by taking action against Robinhood that extends beyond its mandate of investor protection and market fairness. He asserted that instead of hindering innovation, the SEC should prioritize safeguarding investors.

In his statement, Rose condemned the SEC's issuance of a Wells Notice to Robinhood, describing it as a precursor to enforcement action and an overreach of regulatory authority.

Expressing his commitment to ensuring regulatory clarity, Rose highlighted his involvement in advancing the FIT for the 21st Century Act, aimed at reining in what he perceives as regulatory excesses exemplified by figures like Gary Gensler.

Rose's critique adds to a growing chorus of voices denouncing the SEC's recent actions, particularly its threats against Robinhood's crypto arm. Jake Chervinsky, Chief Legal Officer at Variant, echoed similar sentiments on X, accusing the SEC of misusing the Wells Notice process to pressure companies.

Chervinsky raised concerns over the SEC's apparent focus on crypto regulation, suggesting that it diverts resources away from the agency's primary mandate of overseeing traditional equity and debt markets.

Under Gensler's leadership, the SEC has intensified legal actions against prominent entities in the crypto industry, extending beyond exchanges like Coinbase, Kraken, and Binance to include newer players like Consensys, Uniswap Labs, and Robinhood.

Despite the SEC's aggressive stance, Ripple Labs stands as a rare example of pushing back against the agency, securing a partial victory in its legal battle.