(Reuters) — Retail buying and selling platform Robinhood Markets mentioned Monday its U.S. cryptocurrency buying and selling arm acquired a Wells discover from the U.S. Securities and Alternate Fee (SEC) on Might 4.
A Wells discover doesn’t essentially imply that recipients have violated any regulation. The SEC points Wells notices to corporations when it’s planning to carry enforcement motion towards them.
The SEC has adopted a tricky stance towards the digital foreign money trade, particularly after the high-profile collapse of the now-bankrupt FTX cryptocurrency change, and has contended that sure crypto tokens ought to be registered as securities.
Crypto corporations have accused the regulator of overreach. They’ve additionally warned {that a} hostile regulatory setting might immediate extra crypto corporations to maneuver offshore.
“We firmly imagine that the belongings listed on our platform will not be securities and we look ahead to participating with the SEC to clarify simply how weak any case towards Robinhood Crypto could be,” Dan Gallagher, chief authorized, compliance and company affairs officer at Robinhood, mentioned in response to the Wells discover.
The SEC declined to remark.
Robinhood Crypto permits clients to deposit and withdraw cyptocurrencies to and from its custodial platform and in addition routes buyer orders to liquidity suppliers based mostly on the bottom worth.
Final 12 months, it eliminated digital tokens Solana, Cardano and Polygon from its platform.
