Robinhood Crypto faces SEC scrutiny over token listings

The SEC’s crypto crackdown intensifies as Robinhood vows to contest potential charges over token listings.

Robinhood Markets (HOOD) finds itself in the crosshairs of the U.S. Securities and Exchange Commission (SEC) over cryptocurrency offerings on its platform. On May 4th, the company disclosed receiving a Wells notice, signalling potential enforcement action from regulators.

In a defiant tone, Dan Gallagher, Robinhood’s chief legal officer, stated, “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.”

The clash highlights the SEC’s aggressive stance towards digital assets, deeming most cryptocurrencies as unregistered securities. Crypto firms have accused the watchdog of regulatory overreach, setting the stage for a legal showdown.

Robinhood CEO Vlad Tenev doubled down, asserting, “If necessary we will use our resources to contest this matter in the courts.”

The platform enables crypto trading and custodial services, having previously delisted tokens like Solana, Cardano, and Polygon amid regulatory scrutiny.

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