2024

Elon

Elon Musk

The U.S. Securities and Exchange Commission (SEC) has issued a Wells Notice to commission-free stocks and crypto trading platform Robinhood Markets for its <a href="https://coingape.com/robinhood-gets-outperform-rating-as-crypto-market-set-to-triple-by-2025/" target="_blank" rel="noopener">crypto business</a> Robinhood Crypto LLC. The Wells notice from the SEC means the regulator plans to bring an enforcement action against Robinhood’s crypto business for violating securities laws. 
<h2 id="robinhood-s-crypto-operations-receives-wells-notice">Robinhood’s Crypto Operations Receives Wells Notice</h2> 
Robinhood Crypto LLC received a Wells notice from the Staff of the U.S. Securities and Exchange Commission (SEC) last week. The issues in dispute are cryptocurrency listings, crypto custody, and platform operations. 
The SEC has made “preliminary determination” to recommend an enforcement action against Robinhood Crypto alleging violations of Sections 15(a) and 17A of the Securities Exchange Act. 
The potential action may involve a civil injunctive action, public administrative proceeding, and/or a cease-and-desist proceeding and may seek remedies that include an injunction, a cease-and-desist order, disgorgement, pre-judgment interest, civil money penalties, and censure, revocation, and limitations on activities, as per <a rel="nofollow" href="https://www.bloomberg.com/news/articles/2024-05-06/robinhood-markets-gets-sec-subpoena-tied-to-crypto-business?srnd=homepage-europe" target="_blank">Bloomberg</a>. 
In February 2023, Robinhood Crypto received investigative subpoenas&nbsp;from the SEC regarding cryptocurrency listings, custody of cryptocurrencies, and platform operations. Robinhood responded and coordinated with the investigation leading to the SEC alleging securities law violations. 
This is not the first time Robinhood faced scrutiny from US regulators. Robinhood received subpoenas from authorities including the California Attorney General’s Office while seeking information about its crypto arms trading platform, coin listings, custody of customer assets, and much more. 
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<h2 id="robinhood-s-response-to-the-sec">Robinhood’s Response to the SEC</h2> 
“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,” said Dan Gallagher, Chief Legal, Compliance and Corporate Affairs Officer of Robinhood Markets. 
<a rel="nofollow" href="https://newsroom.aboutrobinhood.com/robinhood-response-to-receipt-of-wells-notice-from-the-u-s-securities-and-exchange-commission/" target="_blank">Robinhood Markets</a> believes assets listed on the platform are not securities and the SEC has a weak case in both the facts and the law. 
Robinhood Markets (HOOD) sank 7% in premarket trading on Monday, after it disclosed receiving a Wells Notice on May 4. <a href="https://coingape.com/crypto-stocks/hood" target="_blank" rel="noopener">HOOD price</a> currently trades at $17.57, recovering some drop. 
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
 <a href="https://twitter.com/search?q=%24HOOD&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$HOOD</a> 
 ROBINHOOD SHARES SINK 7% AFTER RECEIVING WELLS NOTICE FROM SEC 
 — *Walter Bloomberg (@DeItaone) <a href="https://twitter.com/DeItaone/status/1787460813789229372?ref_src=twsrc%5Etfw">May 6, 2024</a>
</blockquote> 
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
Also Read: <a href="https://coingape.com/bitcoin-enters-key-buying-zone-btc-price-rally-to-70k/" target="_blank" rel="noopener">Bitcoin Enters Key Buying Zone, BTC Price Rally To $70K?</a> 
The post <a href="https://coingape.com/robinhood-gets-wells-notice-from-us-sec-hood-shares-tank-7/">Breaking: Robinhood Gets Wells Notice From US SEC, HOOD Shares Tank 7%</a> appeared first on <a href="https://coingape.com">CoinGape</a>.

Breaking: Robinhood Gets Wells Notice From US SEC, HOOD Shares Tank 7%

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