John Rose, a Representative from Tennessee's Sixth Congressional District, has strongly criticized the US Securities and Exchange Commission (SEC) for its actions against Robinhood. In a recent post, he referred to the SEC and its Chair, Gary Gensler, as "rogue regulators."

Rose believes that the SEC overstepped its role of safeguarding investors and ensuring fair markets. Instead of hindering progress, he suggests that the SEC should prioritize safeguarding investors.

The Congressman condemned the SEC for going beyond its duty by issuing a Wells Notice to Robinhood, a step preceding enforcement action. He expressed his support for the FIT for the 21st Century Act to bring clarity and refocus regulators like Gary Gensler on protecting investors without impeding innovation.

The SEC has faced criticism for its potential enforcement action against Robinhood's cryptocurrency division. Rose is not alone in his opposition, with other notable figures like Jake Chervinsky, Chief Legal Officer at Variant, also sharing their concerns.

Chervinsky highlighted the SEC's increased use of Wells Notices in the crypto sector, suggesting that the SEC may be misusing these notices as a tactic to pressure companies rather than for legitimate enforcement purposes.

He raised concerns about the SEC's disproportionate focus on crypto regulation, arguing that this diverts resources from its primary responsibility of overseeing traditional equity and debt markets. Chervinsky emphasized the need for the SEC to realign its priorities to fulfill its intended mandate effectively.

Under Chairman Gary Gensler's leadership, the SEC has intensified legal actions against various industry players. Recent lawsuits against major crypto exchanges and entities like Coinbase, Kraken, Binance, Consensys, Uniswap Labs, and Robinhood indicate the SEC's proactive stance in the crypto space.

Despite facing legal battles, Ripple Labs managed to secure a partial victory against the SEC, showcasing the complexities and challenges within the regulatory landscape.