SEC Now Targets Robinhood, Accuses Crypto Exchange Of Violating Securities Rules

Robinhood, the leading crypto exchange targeted by the SEC. (Photo; Doc. Boxmining)

JAKARTA - The US Securities and Exchange Commission (SEC) has been eyeing crypto companies Ripple, where its legal trial took more than three years. Until now, Ripple vs SEC's feud is still ongoing. This time, the SEC is eyeing another crypto company, Robinhood Markets Inc., a well-known crypto trading platform, being the target of the United States Securities and Exchange Commission (SEC). The SEC accused Robinhood of violating regulations related to securities trading.

Robinhood received Notification Wells from the SEC on May 4. This notice indicates that SEC staff have reached an "initial determination" to recommend the agency file a lawsuit against Robinhood. The lawsuit accuses Robinhood of violating two important rules:

The SEC has the right to impose various sanctions on Robinhood, including:

Robinhood expressed disappointment with the SEC's decision and confirmed that they had tried hard to comply with the rules and register with the SEC. The company believes that the assets listed on its platform are not securities and are ready to discuss with the SEC to explain their arguments.

Other SEC Targets In The Crypto Industry

Robinhood is not the only crypto company the SEC targets. In recent months, the SEC has taken action against several other companies, including:

SEC measures in the crypto industry have drawn criticism from several parties. Some think that the SEC is using fear tactics with Notification Wells and disproportionately allocating resources for crypto. They argue that the SEC should focus on its main mission, namely managing the stock market and debt, rather than pursuing the crypto industry.

Robinhood plans to open a dialogue with the SEC to solve this problem. The company's future and the overall crypto industry will depend on the results of the discussions and how the SEC follows up on other cases.