Robinhood Crypto Under Regulatory Fire from SEC: Bracing for Charges
Robinhood braces for SEC charges over crypto trading
The online trading platform Robinhood is bracing for a potential lawsuit or administrative order from the Securities and Exchange Commission (SEC) over its cryptocurrency offerings.
SEC vs. Robinhood Crypto
In a recent regulatory filing, the platform revealed that Robinhood Crypto, its digital currency trading operation, received a 'Wells Notice' from the SEC — a formal warning of a pending enforcement action.
- Dan Gallagher, Robinhood's chief legal officer, expresses disappointment over the SEC's actions.
- Risk of possible civil lawsuits or cease and desist orders looms over Robinhood.
This development comes amid the SEC Chair's stringent approach towards the crypto industry, creating a challenging regulatory environment.
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