Robinhood's crypto business drives massive earnings beat
Robinhood Markets beat estimates for first-quarter profit on Wednesday, thanks to robust crypto trading volumes and rate hikes that boosted its net interest revenue.
The approval of the first spot bitcoin ETFs in the U.S. in January boosted sentiment towards the crypto industry, which had been bruised by several high-profile collapses over the past two years.
The company however disclosed earlier this week that its U.S. crypto trading arm received a so-called Wells notice from the SEC over tokens traded on its platform.
The notice is issued when the regulator plans to bring enforcement action against a company.
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View Details» «The Wells Notice clouds the future of this income stream,» said Lauren Ashcraft, financial services analyst at Emarketer.
But companies generally have an opportunity to respond to a Wells Notice and rectify situations, so Robinhood «still potentially has a chance to maintain this significant source of revenue,» she added.
Robinhood said it was disappointed with the notice but would contest the SEC's claims and, if
