What does the SEC really want: stricter regulation or the end of cryptocurrencies? These recent actions against major crypto exchanges have enthusiasts really worried. Endless lawsuits against Ripple, Grayscale and others, injunction to suspend Kraken’s staking service, call for the registration of exchanges as stock exchanges… According to the latest news, Robinhood would be its next target.
Robinhood, a subpoena issued by the SEC
Robinhood Markets Inc. may see a nearly 100% increase in its cryptocurrency trading volume in mid-February, and expand its range of digital assets by integrating Grayscale’s Bitcoin and Ethereum products, but its situation does not is not unanimously approved by the American finance police.
Last December, reports Cointelegraphthe stock trading company confirmed that it received a subpoena signed by the DRY. It relates to :
- its quotations and custody of cryptocurrencies;
- and operations on its platform.
” In December 2022, following the bankruptcies [survenue l’année dernière dans le marché des cryptos]we have received an investigative subpoena from the SEC relating to, among other matters, RHC-backed cryptocurrencies, cryptocurrency custody and platform operations “, reports the spokesperson for Robinhood.
Refreshing the memory, we will agree that this period follows the series of collapses of crypto exchanges started by FTX in November. Three Arrows Capital, Voyager, Celsius and more followed suit a few weeks later.
Note, however, that subpoenas often do not result in a trial. They consist of a request issued by an entity to a court to obtain information from the subpoena.
The brokerage firm is not in its first legal case
Yes, appearing in court, Robinhood has already experienced it several times. In April 2021, for example, the Attorney General of California subpoenaed him to explain himself on the crypto branch of his platform and other crucial points.
August 2021, the Massachusetts Securities Division reviewed Robinhood for targeting “ inexperienced investors “. A year later, the NYDFS ordered him to pay a $30 million fine for compliance issues.
Earlier this year, the SEC promised to defend the most vulnerable crypto investors for 2023. Let that be the reason for all the fuss.
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