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Robinhood Crypto Says SEC Has 'Weak' Case in Response to Wells Notice

2024-05-06 21:31:39

Robinhood Crypto, the digital assets arm of the popular stock trading app, said Monday that it had received a Wells Notice from the Securities and Exchange Commission (SEC).

“We firmly believe that the assets listed on our platform are not securities,” Dan Gallagher, Robinhood Markets’ chief legal, compliance and corporate affairs officer said in a statement. “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.”

Following enforcement actions against Coinbase and Kraken, Robin Crypto finds itself as the latest U.S. firm in the SEC’s crosshairs offering customers digital asset services. In a filing on Friday, Robinhood warned that the SEC’s recommendation to pursue an enforcement action against Robinhood was related to investigative subpoenas it previously received.

While most exchanges offer customers a myriad of digital assets, Robinhood Crypto’s offerings are comparatively limited. It varies state to state, but In New York, Robinhood Crypto offers investors the ability to buy and sell 15 different cryptocurrencies.

This is a developing story and will be updated.

Edited by Stacy Elliott.