{"id":13264,"date":"2024-05-06T17:49:55","date_gmt":"2024-05-06T14:49:55","guid":{"rendered":"https:\/\/forklog.com\/en\/sec-warns-robinhood-of-potential-lawsuit\/"},"modified":"2024-05-06T17:49:55","modified_gmt":"2024-05-06T14:49:55","slug":"sec-warns-robinhood-of-potential-lawsuit","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/sec-warns-robinhood-of-potential-lawsuit\/","title":{"rendered":"SEC Warns Robinhood of Potential Lawsuit"},"content":{"rendered":"

The cryptocurrency division of online broker Robinhood has received<\/a> a warning from the U.S. Securities and Exchange Commission (SEC) regarding a potential lawsuit.<\/p>\n

The notice in question is a Wells notice<\/a>, a letter indicating that the agency has found violations of securities laws and that the matter may proceed to court.<\/p>\n

\n

\u201cAfter several years of good-faith attempts to seek clarity from the SEC on regulatory matters, including our well-known attempt to \u2018come in and register,\u2019 we are disappointed to receive the notice,\u201d<\/em> the company stated.<\/p>\n<\/blockquote>\n

Robinhood representatives expressed strong confidence that the crypto assets added to the platform do not qualify as securities.<\/p>\n

\n

\u201cWe are prepared to demonstrate to the SEC how weak any case against Robinhood Crypto would be, both factually and legally,\u201d<\/em> the press release asserts.<\/p>\n<\/blockquote>\n

The news of the agency sending Robinhood a warning about a potential lawsuit emerged in March 2023. In its annual report, the online broker disclosed that the claims made in December 2022 concerned the listing of digital assets.<\/p>\n

Robinhood shares opened trading on May 6 with a 2.6% decline, but within the first 30 minutes, they turned positive, gaining 0.72% at the time of writing.<\/p>\n

\"SEC
Daily chart of Robinhood Markets on Nasdaq. Data: Finviz<\/a>.<\/figcaption><\/figure>\n

In the fourth quarter of 2023, compared to July-September, the company’s revenue from digital asset-related transactions surged by 84%<\/a> to $43 million. The company will present its first-quarter 2024 earnings on May 8.<\/p>\n

\"Snimok-ekrana-2024-05-06-v-17.44.42\"
Data: Robinhood Markets.<\/figcaption><\/figure>\n

On January 12, online broker Robinhood opened<\/a> the opportunity for U.S. clients to trade spot bitcoin ETFs.<\/p>\n

Prior to the company’s IPO<\/span> in July 2021, co-founder and CEO Vlad Tenev described digital assets as the foundation of Robinhood’s future growth.<\/p>\n

In April 2024, the online broker officially released<\/a> its cryptocurrency wallet for Android users without geographical restrictions. This expansion followed the launch of the iOS version a year earlier.<\/p>\n

In April 2024, the largest decentralized exchange Uniswap received a warning from the agency about a potential lawsuit<\/a>.<\/p>\n

Later, the Blockchain Association and the Texas Crypto Freedom Alliance challenged<\/a> the SEC, accusing it of \u201ccapricious rulemaking\u201d and \u201cmisguided attacks\u201d on the digital asset industry.<\/p>\n

ConsenSys filed<\/a> a lawsuit against the Commission over the \u201cregulation of ETH as a security.\u201d The company claims the agency has \u201ctargeted\u201d the MetaMask wallet software.<\/p>\n","protected":false},"excerpt":{"rendered":"

The cryptocurrency division of online broker Robinhood has received a warning from the U.S. Securities and Exchange Commission (SEC) regarding a potential lawsuit. The notice in question is a Wells notice, a letter indicating that the agency has found violations of securities laws and that the matter may proceed to court. \u201cAfter several years of […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[36,1234,128,26],"class_list":["post-13264","post","type-post","status-publish","format-standard","hentry","category-news-and-analysis","tag-regulation","tag-robinhood","tag-sec","tag-usa"],"aioseo_notices":[],"amp_enabled":true,"views":"33","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/13264","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=13264"}],"version-history":[{"count":0,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/13264\/revisions"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=13264"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=13264"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=13264"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}