The Securities and Exchange Commission could soon pursue enforcement action against Robinhood , according to the trading firm. Robinhood disclosed

Robinhood says SEC could pursue enforcement actions over its crypto operations, shares fall 2%

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2024-05-06 14:00:05

The Securities and Exchange Commission could soon pursue enforcement action against Robinhood , according to the trading firm.

Robinhood disclosed in a filing Monday that over the weekend the regulator sent it a warning that upon completion of an investigation the company could be charged.

"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," Dan Gallagher, Robinhood's chief legal, compliance and corporate affairs officer, wrote in a blog post.

"We firmly believe that the assets listed on our platform are not securities and 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," he said.

Robinhood had previously disclosed in February that it received subpoenas from the SEC related to its crypto business – specifically its cryptocurrency listings, custody and platform operations. According to Monday's filing, the SEC has now found reason to suggest Robinhood violated securities law.