HomeCryptoSEC Suggests Taking Enforcement Action Against Robinhood's Cryptocurrency Division

SEC Suggests Taking Enforcement Action Against Robinhood’s Cryptocurrency Division


SEC Recommends Enforcement Action Against Robinhood’s Crypto Arm

The Securities and Exchange Commission (SEC) has taken a significant step towards enforcement action against Robinhood Markets’ crypto arm. The popular trading platform disclosed that it had received a “Wells Notice” from the SEC, indicating that the agency’s staff has recommended filing an enforcement action against the company.

The SEC has been investigating Robinhood’s cryptocurrency listings and other related topics, arguing that cryptocurrencies are securities and should be subject to regulatory oversight. Robinhood, on the other hand, has rejected this argument and maintained that the assets listed on its platform are not securities.

In response to the Wells Notice, Robinhood’s chief legal, compliance, and corporate affairs officer, Dan Gallagher, expressed disappointment with the SEC’s decision. He stated that the company has made good faith attempts to work with the SEC for regulatory clarity and believes that any case against Robinhood Crypto would be weak on both factual and legal grounds.

Despite the regulatory challenges, Robinhood’s stock was up 1.9% to $18.29 on Monday, while the S&P 500 rose 0.6%. The company remains optimistic about engaging with the SEC to address the enforcement action and clarify its position on cryptocurrency trading.

For more updates on this developing story, readers can reach out to Emily Dattilo at emily.dattilo@dowjones.com.


XRP Outperforms BTC, SOL, and ETH on Binance, Coinbase, and Kraken in Key Metric

XRP Surpasses Bitcoin, Solana, and Ethereum in Trade Volume on Major Exchanges The cryptocurrency market is buzzing with excitement as XRP, the digital asset associated...

Asset manager predicts that Trump administration could designate Bitcoin as a strategic reserve asset

Bitcoin's Potential as a Strategic Reserve Asset Under a Future Trump Administration Asset manager Bryan Courchesne recently made a bold prediction on CNBC, suggesting that...

What crypto policies might potential Vice Presidents under Kamala Harris bring to the table?

Potential Democratic and Republican Candidates for the 2024 Presidential Election The 2024 presidential race is heating up as experts predict that United States Vice President...

Kaiko predicts that Ethereum price will be influenced by ETF inflows in the near future

Spot Ether ETF Inflows Expected to Impact Price Sensitivity, Says Kaiko The launch of spot Ether ETFs is set to shake up the crypto market...

Most Popular