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SEC Pushes Robinhood on Crypto Trades
SEC Pushes Robinhood on Crypto Trades
The Securities and Exchange Commission (SEC) is preparing for potential enforcement action against Robinhood Markets, Inc (NASDAQ:HOOD), as revealed by the trading company in a recent statement.
Robinhood reported Monday that the SEC issued a warning over the weekend for its cryptocurrency business, indicating that the company could face charges once its investigation concludes.
Dan Gallagher, Robinhood’s head of legal, compliance and corporate affairs, expressed disappointment with the SEC’s decision to issue a Wells Notice related to the company’s U.S. crypto business, CNBC relationships.
In a blog post, they highlighted their long-standing collaboration with the SEC to ensure regulatory clarity. He stated: “We firmly believe that the assets on our platform are not securities and are prepared to show the SEC the weakness of any case against Robinhood Crypto.”
In February, the SEC had already subpoenaed Robinhood over its cryptocurrency listings, platform operations and custody.
In Monday’s statement, the SEC suggested that Robinhood may have violated securities law and outlined potential remedies, such as civil injunctions, administrative proceedings and fines.
Previously, analysts predicted upside for Robinhood shares, citing strong transaction revenue growth.
Robinhood Markets shares have gained more than 102% over the past 12 months. Investors can gain exposure to the stock via the ARK Next Generation Internet ETF (NYSE:ARKW) AND the ARK Fintech Innovation ETF (NYSE:ARKF).
Price Action: HOOD shares were trading 0.22% higher at $17.99 on Monday.
Disclaimer: This content was partially produced with the help of artificial intelligence tools and was reviewed and published by Benzinga editors.
Robinhood crypto illustration. Courtesy photo.
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This article SEC Pushes Robinhood on Crypto Trades originally appeared on Benzinga.com
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