Robinhood has warned of an impending lawsuit from the Securities and Exchange Commission over its cryptocurrency business, in a sign that a US regulatory crackdown on digital assets continues. The retail brokerage said in a filing on Monday that the SEC had over the weekend sent its crypto unit a so-called Wells notice, which warns a company that it faces legal action.
“We firmly believe that the assets listed on our platform are not securities and we look forward to engaging with the SEC to make clear just how weak any case against Robinhood Crypto would be on both the facts and the law.” The SEC said it “does not comment on the existence or non-existence of a possible investigation”.
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