According to Reuters, the SEC sent a “Wells Notice” to the cryptocurrency platform Robinhood.
Robinhood Crypto, the cryptocurrency arm of Robinhood Markets, said it received a Wells Notice from the U.S. Securities and Exchange Commission (SEC) on May 4.
Accordingly, the SEC is investigating Robinhood's cryptocurrency listings and crypto custody operations, alleging that they violate the Securities Exchange Act.
Commenting on the Wells Notice, Robinhood said, “It is disappointing that the SEC has decided to issue a Wells notice regarding our crypto business in the United States.” said.
ROBINHOOD MARKETS INC – "DISAPPOINTED THAT SEC HAS DECIDED TO ISSUE A WELLS NOTICE RELATED TO OUR U.S. CRYPTO BUSINESS"
— *Walter Bloomberg (@DeItaone) May 6, 2024
The Wells Notice is known as a warning that the SEC may file a lawsuit.
Following the news, Bitcoin fell below $64,000.
Robinhood delisted altcoins such as Polygon (MATIC), Solana (SOL), Cardano (ADA) after the SEC filed a lawsuit against Binance and Coinbase in June 2023.
Currently Robinhood, Aave (AAVE), Avalanche (AVAX,) Bitcoin (BTC), Bitcoin Cash (BCH), Chainlink (LINK), Compound (COMP), Dogecoin (DOGE), Ethereum (ETH), Ethereum Classic (ETC) It offers trading for 15 cryptocurrencies, including Litecoin (LTC), Shiba Inu (SHIB), Stellar (XLM), Tezos (XTZ), Uniswap (UNI) and USD Coin (USDC).
*This is not investment advice.
