Robinhood ‘Actively’ Reviews Crypto Offering After SEC Widens Industry Crackdown

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Robinhood Markets is weighing on its crypto choices in line with the agency’s authorized chief Dan Gallagher amid intensified crackdown on the business.

The transfer comes because the securities regulator focused a broad swath of the digital asset market, launching a pair of lawsuits in opposition to two heavyweights – Binance and Coinbase – that collectively account for half of the worldwide buying and selling of cryptocurrencies.

Whereas testifying earlier than the Home Agriculture Committee throughout a meeting targeted on digital belongings, Gallagher, a former SEC commissioner, mentioned Robinhood is “actively reviewing” the US Securities and Trade Fee’s (SEC) evaluation “to find out what, if any, actions to take.”
Robinhood, however, gives customers entry to 18 totally different digital belongings, together with Solana (SOL), Cardano (ADA), and Polygon (MATIC), that are being now deemed as unregistered securities, primarily based on the SEC’s lawsuits this week.
Whereas the NASDAQ-listed investing firm’s trove of crypto is comparatively restricted in comparison with Binance and Coinbase, it’s eager on not drawing the SEC’s consideration.
The brokerage agency had already been in hassle with a number of US-based regulators as a result of its operations. Earlier this 12 months, Robinhood was ordered to pay over $10 million in fines for registering operational deficiency that adversely impacted buyers in the course of the COVID-19 disaster.
It was additionally slapped with a $30 million penalty final summer season by the New York State Division of Monetary Companies (NYDFS) for violating anti-money laundering and cybersecurity legal guidelines.
The company additionally discovered “important failures” within the agency’s compliance program and allegedly adopted insurance policies that didn’t align with NYDFS’ digital foreign money and cybersecurity rules.

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