{"id":78131,"date":"2024-05-06T14:23:29","date_gmt":"2024-05-06T18:23:29","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=78131"},"modified":"2024-05-06T14:24:36","modified_gmt":"2024-05-06T18:24:36","slug":"robinhood-receives-wells-notice-from-u-s-sec","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/robinhood-receives-wells-notice-from-u-s-sec\/","title":{"rendered":"Robinhood Receives Wells Notice from U.S SEC"},"content":{"rendered":"\n

The U.S. SEC has sent Robinhood Markets Inc. a Wells notice <\/a>alerting it to the possibility of an enforcement action for its cryptocurrency business.\u00a0<\/p>\n\n\n\n

\"Robinhood
Robinhood Receives Wells Notice from U.S SEC<\/figcaption><\/figure>\n\n\n\n

According to a regulatory filing submitted on Monday, the SEC's staff has issued a preliminary determination and recommended that the agency take enforcement action against Robinhood Crypto<\/a> for its cryptocurrency listings, custody procedures, and platform operations.<\/p>\n\n\n\n

According to the document, the possible outcomes include disgorgement, an injunction, a cease-and-desist order\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a>, and additional fines or restrictions on operations.\u00a0<\/p>\n\n\n\n

Robinhood revealed that it had complied with the SEC's probe after receiving a subpoena in the past.\u00a0Before the SEC takes enforcement action, corporations have the opportunity to refute the agency's accusations through the use of a Wells notice. <\/p>\n\n\n\n

The notification does not, however, imply that official action will follow. Robinhood Crypto has recently been under more regulatory scrutiny as U.S. authorities focus more on the quickly developing cryptocurrency market<\/a>.\u00a0<\/p>\n\n\n\n

Former CFTC enforcement official and current Consensys lawyer Laura Brookover questioned the focus of the SEC's strategy and condemned it.\u00a0In a post on X, she questioned, “Aren't there like\u2026 actual securities violations the SEC should be focusing on?”<\/p>\n\n\n\n

Following the agency's subpoena news, Robinhood's shares dropped 5% as of 9 a.m. EST, just after markets started. <\/p>\n\n\n\n

\n

ROBINHOOD TANKS 5% AFTER SEC ISSUED WELLS NOTICE RELATED TO U.S. CRYPTO BUSINESS$HOOD<\/use><\/svg><\/span><\/a> pic.twitter.com\/MglAwy9Pzx<\/use><\/svg><\/span><\/a><\/p>— Radar \ud835\ude38\u200b Archie\ud83d\udea8 (@RadarHits) May 6, 2024<\/use><\/svg><\/span><\/a><\/blockquote>

The U.S. SEC has sent Robinhood Markets Inc. a Wells notice alerting it to the possibility of an enforcement action for its cryptocurrency business.\u00a0 According to a regulatory filing submitted on Monday, the SEC’s staff has issued a preliminary determination and recommended that the agency take enforcement action against Robinhood Crypto for its cryptocurrency listings, […]<\/p>\n","protected":false},"author":43,"featured_media":78134,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[1223,143,19108],"class_list":["post-78131","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-robinhood","tag-sec","tag-wells-notice"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2024\/05\/croc_1715018203996.jpeg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/78131","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/43"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=78131"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/78131\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/78134"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=78131"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=78131"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=78131"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}