The Wall Street Journal reports that the US Securities and Exchange Commission (SEC) has sent a Wells Notice to investment platform Robinhood.
A “Wells Notice” is a notice from the SEC stating that it plans to investigate a specific individual or entity to XEM whether they have violated securities laws. Typically, a Wells Notice is sent before the SEC makes a formal decision to initiate an investigation or other legal proceeding. Wells Notice provides an opportunity for the person or organization receiving the notice to present any reasons or evidence in their defense before a final decision is made.
The agency's staff made a “preliminary determination” to recommend that the SEC take enforcement action against Robinhood.
Similar to the charges brought by the SEC against Coinbase and other cryptocurrency platforms – violations of the Securities Exchange Act of 1934 – essentially, in their view, Robinhood provided customers with Cryptoasset that the SEC labels as unregistered securities.
In December 2022, the cryptocurrency exchange received an investigative subpoena from the SEC regarding its cryptocurrency listings, cryptocurrency custody services, and overall operations. boulder.
Currently, the only cryptocurrency that the SEC labels a commodity is Bitcoin. As for altcoins, SEC Chairman Gary Gensler suggested that most of them be considered securities.
However, last June, the SEC partially lost its case against Ripple when a judge ruled that the sale of XRP on the secondary market did not constitute an investment contract.
Commenting on the agency's latest move, Robinhood said:
“It is disappointing that the SEC has decided to issue a Wells Notice regarding our cryptocurrency business in the United States.”
Following this news, Bitcoin dropped below $64,000.
BTC price chart. Source: TradingView
Join Bitcoin Magazine's Telegram: https://t.me/tapchibitcoinvn
Follow Twitter (X): https://twitter.com/tapchibtc_io
Follow Tiktok: https://www.tiktok.com/@tapchibitcoin
Annie
Bitcoin Magazine
