Robinhood crypto exchange confirmed that the SEC agency sent a subpoena request for its crypto services, in late 2022.
Robinhood is a crypto & stock trade platform. The services of this exchange are available in the US and only 18 crypto assets are allowed to trade on this platform. The majority of the crypto assets on Robinhood platform was listed by this company in 2022, on behalf of the demand of the customers.
Recently Robinhood submitted its 10K filing and disclosed that the United States Securities and Exchange Commission (SEC) sent a subpoena request over its crypto trading & custody services to the customers, just after the bankruptcy filing of FTX crypto exchange in Nov 2022.
According to Robinhood’ point of view, the SEC agency wants to figure out whether Robinhood’s crypto services are under Securities law or not and if found any violation then surely Robinhood will face regulatory penalties, customer liabilities, and judicial or administrative sanctions.
Robinhood also confirmed that the company received a similar kind of subpoena from the California Attorney General’s office over its crypto services and also Robinhood team is cooperating with the corresponding agency.
The current trade price of HOOD stock is $9.72 & this trade price is 1.36% high than the last 24 hours’ trade price.
This price graph is showing that this negative news failed to impact the HOOD price.
SEC vs Crypto Companies
In the last few weeks, it has been seen that many US authorities including the SEC agency took many enforcement actions against crypto companies.
At present, BUSD issuer Paxos is under a very big regulatory hurdle because US regulatory bodies ordered it to stop providing BUSD stablecoin services.