• Robinhood, a securities brokerage firm with crypto services, has received a subpoena from the SEC and California Attorney General’s Office.
• The SEC is looking into its cryptocurrency listings, custody of cryptocurrencies and platform operations.
• This is part of the wider regulatory crackdown on crypto in the U.S., which has also impacted Kraken, Binance, and Paxos.
Robinhood Receives Subpoena from SEC
Robinhood, a securities brokerage firm that also offers cryptocurrency services, has revealed that it’s been affected by the collapse of FTX late last year. The company disclosed in a 10-K filing that it received a subpoena from the U.S. Securities and Exchange Commission (SEC) last December relating to its „cryptocurrency listings, custody of cryptocurrencies and platform operations.“
California Attorney General Involved
Robinhood also said it received a subpoena from the California Attorney General’s Office seeking information about its trading platform, business and operations, custody of customer assets, customer disclosures, and coin listings. Robinhood currently lists 18 cryptocurrencies, including bitcoin (BTC), ether (ETH), and dogecoin (DOGE). The company said that if the SEC deems some of these as securities they might be forced to delist them.
Wider Regulatory Crackdown
The attention Robinhood is getting from the SEC and other institutions seems to be part of a wider regulatory crackdown on crypto in the U.S. Multiple other crypto-related companies have recently been impacted by decisions made by the SEC including Kraken, Binance, and Paxos.
Kraken Fined $30 Million
For example, a few weeks ago, the SEC forced Kraken to pay a $30 million fine and shut down its staking services because it sold unregistered securities. On top of that ,the SEC has also sued Paxos for issuing an unregistered security – BUSD – which is backed by Binance.
Overall this article highlights how Robinhood has been targeted as part of a wider crackdown on crypto businesses in America by both State authorities like California AGs office as well as Federal ones such as US SEC forcing fines or closures if found guilty selling unregistered securities .