• Robinhood receives subpoena from the SEC and California Attorney General’s Office about its crypto services
• SEC has been cracking down on crypto companies, including Kraken, Binance, and Paxos.
• If any of the 18 cryptocurrencies supported by Robinhood are deemed securities, the company might have to delist them.
Robinhood Receives Subpoena From SEC
Robinhood, a securities brokerage firm that also offers cryptocurrency services, recently revealed that it has received a subpoena from the U.S Securities and Exchange Commission (SEC) last December relating to its „cryptocurrency listings, custody of cryptocurrencies and platform operations.“ The company also received a subpoena from the California Attorney General’s Office seeking information about its trading platform, business and operations, custody of customer assets, customer disclosures, and coin listings.
Crypto Services Offered By Robinhood
Currently Robinhood supports 18 cryptocurrencies including bitcoin (BTC), ether (ETH), and dogecoin (DOGE). If any of these coins are deemed securities by the SEC then Robinhood might have to delist them in order to comply with regulations.
SEC Cracking Down On Crypto Companies
The attention that Robinhood is getting from the SEC seems to be part of a wider regulatory crackdown on crypto in the U.S. Other crypto-related companies that have recently been affected include Kraken which was forced to pay a $30 million fine for selling unregistered securities as well as Binance and Paxos who have both been sued by the SEC.
Potential Impact On Cryptocurrencies
If some of the cryptocurrencies listed by Robinhood are deemed securities then this could have major implications for traders using their platform as they would no longer be able to trade these coins through it. This could lead to lower volumes for certain coins as well as higher volatility if fewer investors are able to access them easily through exchanges such as Robinhood.
The recent actions taken by regulatory bodies towards cryptocurrency companies demonstrate just how serious they are taking this industry’s potential risks and shows that they will not hesitate to take action when necessary in order to protect investors’ interests. It remains unclear exactly how this will affect different coins listed by Robinhood but it is certainly something worth watching out for in the coming months ahead.
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