• Robinhood 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 crypto services
• The company said that if the SEC deems some of the cryptocurrencies it supports securities, it might be forced to delist them.
• The SEC has recently ramped up its regulatory war against crypto services companies.
Robinhood Receives Subpoena From SEC Over Crypto Services
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.“ A subpoena is a formal written order to testify before a court or provide documents during an active investigation.
California Attorney General’s Office Also Issues Subpoena
Robinhood said it has also 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).
SEC Might Force Delisting of Certain Cryptocurrencies
The company said that if the SEC deems some of the cryptocurrencies it supports securities, it might be forced to delist them. „To the extent that the SEC or a court determines that any cryptocurrencies supported by our platform are securities, that determination could prevent us from continuing to facilitate trading of those cryptocurrencies (including ceasing support for such cryptocurrencies on our platform).“
Wider Regulatory Crackdown on Crypto
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 the SEC’s decisions, including Kraken, Binance, and Paxos.
Regulatory War Against Crypto Services Companies
SEC’s Crackdown on Crypto Continues The SEC has recently ramped up its regulatory war against crypto services companies. For example, a few weeks ago, the SEC forced Kraken, one of the largest centralized crypto exchanges