Robinhood Crypto gets Wells notice from US Securities, Exchange Commission

Retail trading platform Robinhood Markets said on Monday its U.S. cryptocurrency trading arm received a Wells notice from the United States Securities and Exchange Commission (SEC) on May 4.

A Wells notice does not necessarily mean that recipients have violated any law. The SEC issues Wells notices to firms when it is planning to bring enforcement action against them.

The SEC has adopted a tough stance toward the digital currency industry, especially after the high-profile collapse of now-bankrupt FTX cryptocurrency exchange, and has contended that certain crypto tokens should be registered as securities.