Robinhood Crypto gets Wells notice from US SEC

[zasad@]

https://www.reuters.com/business/finance/robinhood-crypto-gets-wells-notice-us-sec-2024-05-06/
"May 6 (Reuters) - Retail trading platform Robinhood Markets (HOOD.O), opens new tab said on Monday it received an enforcement action notice from the U.S. Securities and Exchange Commission (SEC) on May 4 over crypto tokens traded on its platform.
The company said it received a so-called "Wells notice," which the SEC issues when it is planning to bring enforcement action against them. Such notices do not necessarily mean the company has engaged in wrongdoing.
"We firmly believe that the assets listed on our platform are not securities and we look forward to engaging with the SEC to make clear just how weak any case against Robinhood Crypto would be," Dan Gallagher, chief legal, compliance and corporate affairs officer at Robinhood, said.
The SEC has adopted a tough stance toward the digital currency industry, arguing most cryptocurrency tokens are securities and subject to its registration rules, while crypto firms have accused it of overreach. The regulator declined to comment on the enforcement action notice."

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Regulation in the crypto market is just beginning.

[diana658h]

https://www.reuters.com/business/finance/robinhood-crypto-gets-wells-notice-us-sec-2024-05-06/bcbsfl
"May 6 (Reuters) - Retail trading platform Robinhood Markets (HOOD.O), opens new tab said on Monday it received an enforcement action notice from the U.S. Securities and Exchange Commission (SEC) on May 4 over crypto tokens traded on its platform.
The company said it received a so-called "Wells notice," which the SEC issues when it is planning to bring enforcement action against them. Such notices do not necessarily mean the company has engaged in wrongdoing.
"We firmly believe that the assets listed on our platform are not securities and we look forward to engaging with the SEC to make clear just how weak any case against Robinhood Crypto would be," Dan Gallagher, chief legal, compliance and corporate affairs officer at Robinhood, said.
The SEC has adopted a tough stance toward the digital currency industry, arguing most cryptocurrency tokens are securities and subject to its registration rules, while crypto firms have accused it of overreach. The regulator declined to comment on the enforcement action notice."

___
Regulation in the crypto market is just beginning.

Hello, @zasad

Robinhood Markets, known for its retail trading platform, has indeed received a “Wells notice” from the U.S. Securities and Exchange Commission (SEC) concerning the crypto tokens traded on its platform. This notice, issued on May 4, indicates that the SEC is considering enforcement action but does not necessarily imply any wrongdoing by Robinhood.

The company has expressed confidence in its position, stating that the assets listed on their platform are not securities and is prepared to engage with the SEC to demonstrate the weakness of any potential case against Robinhood Crypto. The SEC’s stance has been stringent, viewing most cryptocurrency tokens as securities, which has led to a clash with crypto firms over regulatory reach. Robinhood’s response to this notice is a reflection of the ongoing debate in the digital currency industry regarding the classification and regulation of crypto tokens.

Best Regard,
diana658h

[zasad@]

I watched the recent speech of the head of the SEC and, despite all the court decisions, he still considers all tokens to be securities. Regulation in the crypto market has just begun and all large companies associated with cryptocurrencies will suffer. I understand that “Wells notice” is not a death sentence, but given the experience of other crypto companies, I can assume that after this there will be an interesting continuation.