The Securities and Exchange Commission (SEC) is continuing its investigation into cryptocurrency exchanges with the possibility of suing Robinhood Markets.
The SEC, in its role as the agency responsible for regulating securities markets and protecting investors, could sue the US-based Robin Hood Popular crypto app has been accused of securities violations. one in Recent SEC filing dated May 4Jason Warnick, Chief Financial Officer of Robinhood Markets, confirmed that Robinhood Crypto has received investigative subpoenas from the SEC regarding “cryptocurrency listings, custody of cryptocurrencies, and platform operations.”
This comes after months of investigation into the suspects Security Violations in which Robinhood has cooperated thus far. However, according to the filing, the SEC sent a Wells Notice on Monday, May 6, telling the crypto app that the agency has made a “preliminary determination” and recommended that an enforcement action be filed stating that Robinhood Crypto has breached. Securities Exchange Act of 1934.
What do SEC filings mean?
If an enforcement action is filed, the next steps could be a civil injunction action, public administrative action and/or cease-and-desist proceedings, according to the filing.
Robinhood publicly responds to SEC filing A statement from Dan GallagherThe app’s chief legal, compliance and corporate affairs officer wrote on May 6 that he was “disappointed.”
He added, “We strongly believe that the assets listed on our platform are not securities and we look forward to engaging with the SEC to make clear how weak any case against Robinhood Crypto will be on both the facts and the law. “
Last June, Gallagher testified to Congress that 18 months of negotiations with the SEC did not help Robinhood understand how to properly register its crypto trading business. While the company says there has been no security breach, it described the situation on its website in December 2023 as “a world of confusion around crypto.”
Featured Image: Unsplash
sec-could-sue-robinhood-as-security-violation-investigation-continues
