Fintech Nexus Newsletter (May 6, 2024): The SEC sends a Wells Notice to Robinhood about crypto

The SEC is at it again.

Over the weekend we learned that the SEC has sent a Wells Notice to Robinhood regarding its crypto activities. 

The SEC said that it has “made a preliminary determination recommending that the SEC file an enforcement action against the [crypto] unit for alleged violations of the Securities Exchange Act of 1934”.

If ever there was an argument for new crypto regulation in the U.S., that sentence is it. We really are regulating crypto from rules written 90 years ago. Yeah, that seems like a good idea.

Robinhood published this response this morning, arguing it has tried to engage with the SEC, like many other crypto exchanges, seeking regulatory clarity but the regulator has responded with the threat of an enforcement action.

Robinhood reports earnings on Wednesday where I am sure this will be a topic of discussion.

> Robinhood says SEC could pursue enforcement actions over its crypto operations

By Tanaya Macheel

Robinhood had disclosed in February that it received subpoenas from the SEC related to its crypto business.

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