SEC Targets Robinhood’s Cryptocurrency Unit: Potential Impact on Bitcoin (BTC) and Altcoins

• Robinhood Markets (HOOD) has received a Wells Notice from the Securities and Exchange Commission (SEC), recommending enforcement action against its crypto business, Robinhood Crypto (RHC).
• The SEC may seek an injunction, a public administrative proceeding or a cease-and-desist order as potential enforcement actions, and could limit or revoke Robinhood’s crypto activities.
• Following the announcement, Robinhood stock tumbled as much as 7% premarket Monday, but managed to close with a 1% decline.

Robinhood Markets faces potential enforcement action from the SEC over its crypto business, impacting its stock performance and raising questions about the company’s future in the cryptocurrency sector.

SEC Issues Wells Notice to Robinhood

Robinhood Markets disclosed in a Monday filing that it received a Wells Notice from the SEC on Saturday. The notice recommended enforcement action against Robinhood’s crypto business, Robinhood Crypto (RHC). RHC had previously received subpoenas from the SEC regarding its cryptocurrency listings, custody services, and platform operations. Robinhood has cooperated with these investigations.

Potential Consequences for Robinhood

The SEC’s potential enforcement actions could include an injunction, a public administrative proceeding, or a cease-and-desist order. The regulator may also require Robinhood to pay disgorgement,... Read the full article for FREE at COINOTAG!