Robinhood, the popular retail trading platform, has announced that it will take legal action against the US Securities and Exchange Commission (SEC) after being accused of securities violations. The SEC issued a Wells Notice to Robinhood Crypto, indicating that charges may be filed against the company. CEO Vlad Tenev criticized the SEC’s actions, referring to them as a “regulatory onslaught” that stifles innovation and hinders American businesses and investors. The SEC’s investigation into Robinhood’s crypto business focuses on potential violations of the Securities Exchange Act of 1934. The enforcement action could result in injunctions, disgorgement, civil penalties, and activity limitations. Robinhood Crypto previously complied with regulatory scrutiny by ceasing support for tokens classified as securities, which led to the loss of trading access to certain altcoins. Robinhood is prepared to fight the SEC in court to challenge the allegations. The SEC’s scrutiny of Robinhood Crypto is part of a broader crackdown on the crypto industry, with other major players also facing warnings and legal action. Robinhood Crypto has previously faced regulatory challenges and financial penalties.
