Welcome back to The Breakdown with me, NLW.

It's a daily podcast on Macro, Bitcoin, and the Big Picture Power Shifts remaking our world.

What's going on, guys? It is Tuesday, May 7th, and today we are talking about the Robin Hood

Wells Notice. Before we get into that, however, if you are enjoying the breakdown, please go

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conversation, come join us on the Breakers Discord. You can find a link at the show notes or go

to bit.ly slash breakdown pod. Let's get to today's big news, which is that Robin Hood has received a Wells notice from the

SEC. The Wells notice was disclosed to Robin Hood shareholders in a Form 8K filing on Monday,

and is, you guessed it, related to the firm's crypto division.

Robin Hood said that SEC staff have decided to recommend enforcement action against the

crypto unit

alleging securities violations. This is the latest in a long series of Wells notices issued by

the SEC against major firms in the industry. Uniswap and Consensus disclosed the receipt of

Wells notices last month. It's believed that a large number of subpoenas and Wells notices

have been issued over the past year to firms working in the Ethereum ecosystem. A Wells notice is issued prior to SEC staff recommending enforcement action

to the committee. The process is intended to give firms fair notice and an opportunity to discuss

the allegations with the SEC in advance. Robin Hood's CEO Vlad Tenev writes,

Over the last three years, we've reached a state of regulatory onslaught that is harmful to

American companies and consumers.

The SEC's continued attack on crypto, coupled with recent rule proposals like the one related

to predictive data analytics, mark yet another improper attempt by the administrative state

to stifle innovation.

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