Robinhood Says It Could Be Forced To Delist Some Crypto As SEC Issues Subpoena to Exchange

The event is the most recent in a slew of latest crypto-focused actions from the SEC.

America Securities and Trade Fee (SEC) has issued a subpoena to the American buying and selling platform Robinhood over its crypto listings. The latest growth was dropped at public mild by Robinhood by way of its newest 10-Okay submitting with the SEC.

Fox Enterprise journalist Eleanor Terrett additionally highlighted the story.

🚨BREAKING: The @SECGov has issued a subpoena to @RobinhoodApp over its cryptocurrency listings.

— Eleanor Terrett (@EleanorTerrett) February 27, 2023

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The subpoena particularly requests details about the platform’s custody measures, in addition to its operations associated to the property it at present lists.

Robinhood additional revealed that the investigative subpoena, which is likely one of the components that would harm its model, was served to them following the bankruptcies that rocked the crypto scene final 12 months. The platform famous that it may very well be pressured to delist cryptocurrencies considered securities by the SEC or a courtroom.

Robinhood at present accommodates 18 completely different cryptocurrencies on its platform, together with Bitcoin (BTC), Ethereum (ETH), Shiba Inu (SHIB), and Dogecoin (DOGE). Very like Coinbase, the platform doesn’t present help for XRP. A number of market watchers have attributed this to the authorized state of affairs surrounding the asset.

However, as a result of lack of regulatory readability throughout the native crypto business in the USA, American-based platforms reminiscent of Robinhood have little concept of the place they stand in relation to the legislation with regard to their cryptocurrency listings.

SEC Chair Gary Gensler lately disclosed why he believes most crypto property, apart from Bitcoin, are securities, in an interview with Intelligencer. Final December, U.S. Congressional candidate January Walker suggested the crypto business to help XRP in opposition to the SEC’s perceived overreach, warning that it might have an effect on the entire business quickly.

Business gamers have bemoaned this unclarity particularly lately that the SEC has taken a specific curiosity within the crypto scene following the FTX implosion. Entities reminiscent of Kraken and Paxos have been caught up within the regulatory watchdog’s latest crackdown.

Recall that Terrett revealed on Feb. 9 that Gensler plans to embark on a “midnight bloodbath” geared toward bringing the crypto scene beneath his management. She warned of a cluster of enforcement actions within the coming weeks from the SEC, the New York Division of Monetary Providers, and The Workplace of the Comptroller of the Foreign money.

🚨SCOOP: @GaryGensler is embarking on a “midnight bloodbath” in an try and deliver all of #crypto beneath his management. Within the coming weeks, the @SECGov, @NYDFS and the @USOCC can be bringing a myriad of enforcement actions in opposition to exchanges, banks

— Eleanor Terrett (@EleanorTerrett) February 9, 2023