Fintech trading app Robinhood is currently evaluating the listing of tokens that have been named as unregistered securities
There is a need for mandatory disclosure standards for digital assets.
Fintech trading app Robinhood is currently evaluating the listing of tokens that have been named as unregistered securities in recent enforcement actions by the Securities and Exchange Commission (SEC). Robinhood's Chief Legal Compliance Officer, Dan Gallagher, testified before the House Agriculture Committee, stating that the company is actively reviewing the SEC's analysis to determine appropriate actions.
While Robinhood holds a broker-dealer license for securities trading, Gallagher expressed doubts about the company's ability to trade tokens listed as unregistered securities, such as Solana, Polygon and Cardano, due to the lack of disclosures typically required for security investments.
During the hearing, there were concerns raised about the lack of mandatory disclosures and transparency in the crypto space. Gallagher highlighted the need for compulsory disclosure standards in the digital asset realm, as retail investors often struggle to understand the nature of their crypto investments. Representative John Duarte expressed skepticism about the effectiveness of disclosures for crypto projects, comparing the situation to special purpose acquisition companies (SPACs), which have faced criticism for insufficient disclosures and poor outcomes for retail investors.
