Robinhood exec says proposal for a single digital asset regulator is stupid
Robinhood’s chief legal officer is not enamored with a recent Coinbase proposal for a separate regulatory body for the crypto space.
Robinhood’s chief legal officer Dan Gallagher described the idea of creating a new digital asset regulator was “just plain silly” at a conference on Nov. 17.
Robinhood is a popular commission-free trading app that offers digital assets, and rival crypto asset exchange Coinbase put foward the idea of a new regulator in October.
Gallagher told attendees at the Georgetown University Financial Markets Quality Conference that “it doesn’t make sense” to add additional agencies to “the alphabet soup of Washington.”
He went on to say that attempting to transfer authority from agencies like the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) to another regulator was “one of the stupidest ideas I’ve heard in this space in a long time.”
Gallagher previously served as a commissioner on the Securities and Exchange Commission during the Obama administration. He was speaking as part of the Future of Digital Assets Panel at the conference.
“To avoid fragmented and inconsistent regulatory oversight of these unique and concurrent innovations, responsibility over digital assets markets should be assigned to a single federal regulator.”
Gallagher said Robinhood has taken a more conservative approach than Coinbase to avoid getting into regulatory hot water. Where Coinbase supports 51 different cryptocurrencies, Robinhood only supports seven.
“We have to be very careful and deliberate,” he said. “You can’t just be taking on new coins if by the next day some regulator is going to call them a security.”