Robinhood Crypto Says SEC Has ‘Weak’ Case in Response to Wells’ Announcement

Robinhood Crypto, the digital assets arm of popular stock trading app, said on Monday that it has received a notice from the Securities and Exchange Commission (SEC).

“We strongly believe that the properties listed on our platform are not securities,” said Dan Gallagher, head of legal, compliance and corporate affairs for Robinhood Markets, in a statement. “We look forward to engaging with the SEC to clarify how weak any case against Robin Hood Crypto will be, both in fact and in law.”

Following enforcement actions against Coinbase and Kraken, Robinhood Crypto finds itself in the SEC's crosshairs as the latest US company offering digital asset services to clients. Robinhood warned in a filing on Friday that the SEC's recommendation to pursue enforcement action against Robinhood is related to a previous subpoena.

While most exchanges offer countless digital assets to clients, Robin Hood's crypto offerings are relatively limited. It varies by state, but in New York, Robinhood Crypto offers investors the ability to buy and sell 15 different cryptocurrencies.

This is a developing story and will evolve.

Edited by Stacy Elliott.