The Digital Chamber, a trade association in the digital asset sector, has criticized the SEC for issuing a Wells notice to Robinhood Crypto. In a statement released on May 6, the association expressed disappointment and concern over the notice, labeling it as regulatory overreach. The Digital Chamber emphasized its opposition to the SEC's actions, accusing the regulatory body of expanding its jurisdiction without proper authorization. To address these jurisdictional issues, the association called for immediate legislative action and demanded that SEC Chairman Gary Gensler testify before Congress.

Supporting Robinhood, the Digital Chamber highlighted the company's efforts towards compliance and registration with the SEC. The association declared its readiness to assist Robinhood Crypto and other affected entities in finding a resolution that safeguards their operations and innovation. While not confirming its intent to file an amicus brief in support of Robinhood, the Digital Chamber referenced a previous filing in favor of crypto exchange Kraken.

The association also criticized the SEC for failing to fulfill its duty of investor protection by disrupting emerging companies and decreasing investors' ability to make independent financial decisions. The Wells notice received by Robinhood Crypto on May 4 enables the company to respond to the SEC's allegations before any enforcement actions are taken, although it does not guarantee that formal measures will be implemented.

The increased regulatory scrutiny faced by Robinhood Crypto reflects the growing attention from US authorities towards the evolving crypto market. Legal experts have likened the issuance of Wells Notices to companies like Robinhood, Uniswap, and Consensys to a "carpet bombing campaign" against the crypto sector, warning that this aggressive approach could lead to operational and legal challenges for the targeted companies.