SEC subpoenaed Robinhood over crypto listings

Trading app provider Robinhood was subpoenaed by U.S. securities regulators late last year, according to documents filed by the company. February 27.

In its filing, Robinhood said it has received a subpoena of investigation from the U.S. Securities and Exchange Commission (SEC) regarding various issues such as the listing of cryptocurrencies, cryptocurrency custody practices, and platform operations. .

The company said it received the subpoena in December 2022, after FTX went bankrupt in November 2022 (and others in the summer).

Robinhood said it could face sanctions if the SEC or a court determines it has not complied with securities regulations. The company also said that if listed cryptocurrencies are determined to be securities, it may not be able to support trading in those assets. Additionally, Robinhood said it could force users to pay regulatory penalties and compensation.

Robinhood made the above statement in the 10-K filing. This is the annual report required for public and private companies. The application is for the fiscal year ending December 2022, but no application has been filed or made public until today.

Despite the SEC’s apparent involvement with Robinhood, there is no indication that regulators plan to take immediate action against the company. The company said it will cooperate with all investigations filed today.

This news will have little, if any, effect on the value of the company’s stock. Robinhood shares (HOOD) are up 1.36% today, but after hours he’s down 0.62%.