On September 19th, The Block reported that a heated debate erupted in a US Congressional hearing regarding cryptocurrency regulation. While some companies have received permission from the Securities and Exchange Commission (SEC) to legally custody crypto assets, many crypto firms and lawmakers continue to criticize the SEC's regulatory approach.

Dan Gallagher, Robinhood's Chief Legal Officer, said the company had suggested adjusting regulations while discussing its crypto business with the SEC, but the communication ultimately broke down. Meanwhile, Democratic Congressman Stephen Lynch stated that the rules are clear and crypto companies shouldn't selectively comply. The crypto industry accuses the SEC of selective enforcement, arguing its policies hurt innovation and American competitiveness.