Robinhood Crypto gets Wells notice from US SEC
Robinhood Markets said on Monday it received an enforcement action notice from the U.S. Securities and Exchange Commission (SEC) on May 4 over crypto tokens traded on its platform.
The company said it received a so-called "Wells notice," which the SEC issues when it is planning to bring enforcement action against them. Such notices do not necessarily mean the company has engaged in wrongdoing.
«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,» Dan Gallagher, chief legal, compliance and corporate affairs officer at Robinhood, said.
The SEC has adopted a tough stance toward the digital currency industry, arguing most cryptocurrency tokens are securities and subject to its registration rules, while crypto firms have accused it of overreach. The regulator declined to comment on the enforcement action notice.
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View Details»«If necessary we will use our resources to contest this matter in the courts,» Robinhood CEO
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