SEC Targets Robinhood Crypto, Stock Drops 7%, Tokens Delisted

May 6, 2024, 01:13 PM

Robinhood Markets Inc. has received a Wells Notice from the U.S. Securities and Exchange Commission (SEC), indicating potential enforcement action related to its cryptocurrency business. The notice, issued on May 4, suggests preliminary plans by the SEC to recommend enforcement actions for alleged violations of Sections 15(a) and 17A of the Securities Exchange Act. This development has significantly impacted Robinhood's stock, which saw a decrease of up to 7% following the announcement. The company expressed disappointment over the SEC's decision, emphasizing their belief that the assets listed are not securities. Additionally, Robinhood has delisted tokens, including SOL, in response to the SEC's actions.