SEC is ready to sue popular fintech platform Robinhood
The SEC sent a notice of possible legal action to the cryptocurrency division of fintech service Robinhood. The regulator announced that violations of US securities laws had been found and the issue would have to be resolved in court.
“After years of good faith attempts to work with the SEC for regulatory clarity including our well-known attempt to ‘come in and register,’ we are disappointed that the agency has decided to issue a Wells Notice related to our U.S. crypto business,” the company said in a statement.
Robinhood firmly believes that the SEC’s claims are unfounded. The cryptocurrencies presented on the platform do not correspond to the status of securities, the company noted.
“We look forward to engaging with the SEC to make clear just how weak any case against Robinhood Crypto would be on both the facts and the law,” the firm said in a press release.
In the fourth quarter of last year relative to July-September, Robinhood’s revenue from operations related to digital currencies grew by 84%, to $43 million. The fintech platform will present its reports for the first quarter of 2024 this week.
At the same time, in 2023, Robinhood was forced to abandon support for Solan, Cardano and Polygon. This happened due to the fact that the American regulator equated crypto assets in lawsuits against Binance and Coinbase to unregistered securities.
Let us recall that against the backdrop of Robinhood’s IPO in the summer of 2021, the company stated that digital currencies are the basis for the future development of the service. Earlier this year, it became known that the online broker was providing its American clients with the opportunity to trade Bitcoin ETFs.
A little later, Robinhood presented a crypto wallet for Android users without any geographical restrictions. The innovation occurred a year after the appearance of the iOS version.
And now one of the most popular online brokers is at risk of experiencing the same problems as other popular platforms that deal with cryptocurrency assets. What do you think about this?
