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Robinhood Crypto Receives SEC Wells Notice
On Monday, Robinhood Crypto, the digital assets division of the popular stock trading app Robinhood Markets, announced that it had received a Wells Notice from the Securities and Exchange Commission (SEC). This development comes after recent enforcement actions taken against other U.S. firms like Coinbase and Kraken.
Dan Gallagher, the Chief Legal, Compliance, and Corporate Affairs Officer at Robinhood Markets, stated that the company firmly believes that the assets listed on its platform are not securities. He expressed eagerness to engage with the SEC to demonstrate the weaknesses in any potential case against Robinhood Crypto, from both factual and legal standpoints.
In a filing submitted on Friday, Robinhood warned stakeholders about the SEC’s recommendation to pursue an enforcement action against the company. This recommendation is linked to investigative subpoenas that Robinhood had previously received.
While most cryptocurrency exchanges offer a wide range of digital assets to customers, Robinhood Crypto’s offerings are relatively limited. The availability of assets varies from state to state. For instance, in New York, investors using Robinhood Crypto can trade in 15 different cryptocurrencies.
This situation is still unfolding, and more information is expected to emerge as the story develops.
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