SEC Warns Robinhood That Its Crypto Business Faces Lawsuit
- Company says that it recently received a Wells notice
- Robinhood says offerings don’t break agency regulations
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The US Securities and Exchange Commission warned Robinhood Markets Inc. that it faces an enforcement action over its crypto business — the latest sign that the regulator isn’t letting up on its years-long crackdown on digital assets.
Robinhood, which is best known for stock trading, said on Monday that the SEC’s enforcement staff had sent the firm a Wells notice, indicating that it made an initial determination to recommend enforcement action. The company’s shares rose as much as 2.8% in New York.