US SEC targets Robinhood in crypto probe
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Loading... - Pia Morale
- 03 Mar 2023
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The US Securities and Exchange Commission's crackdown on crypto has spilt over into 2023. This time, online trading app Robinhood is being targeted by the securities regulator over its crypto trading business. According to a recent filing, the SEC subpoenaed Robinhood in December.
The timing is surely no coincidence and comes after cracks in the crypto space began to emerge in 2022, chief among which was the failure of cryptocurrency exchange FTX in November. At the top of the SEC's list is whether tokens that are supported on platforms like Robinhood are securities. Robinhood outlined in its filing that the regulator wants to know more about its:
- -Support of cryptocurrencies
- -Crypto custody
- -Platform operations
Earlier this year, US-based crypto exchange Kraken settled with the SEC over failing to register crypto assets that were offered as part of a staking program, a popular activity in the decentralized finance (DeFi) world. A similar outcome for Robinhood "could prevent us from continuing to facilitate trading of those cryptocurrencies (including ceasing support for such cryptocurrencies on our platform," the filing states. Read More…
