Robinhood ‘Actively’ Reviews Crypto Offering After SEC Widens Industry Crackdown

Robinhood Markets is weighing in on its crypto offerings, according to Dan Gallagher, the firm’s legal head, amid an intensifying crackdown on the industry.

The move comes as the securities regulator targeted a broad swath of the digital asset market, launching a pair of lawsuits against two heavyweights – Binance and Coinbase – which together account for half of the global trading of cryptocurrencies.

• While testifying before the House Agriculture Committee, a meeting Focusing on digital assets, Gallagher, a former SEC commissioner, said Robinhood is “actively reviewing” the U.S. Securities and Exchange Commission’s (SEC) analysis “to determine what, if any Action should be taken.”
• Robinhood, on the other hand, gives users access to 18 different digital assets, including Solana (SOL), Cardano (ADA), and Polygon (MATIC), which are now being considered unregistered securities based on SEC filings this week.
• While the NASDAQ-listed investment company’s trove of crypto is relatively limited compared to Binance and Coinbase, it has been keen not to attract the attention of the SEC.
• The brokerage firm was already in trouble with several US-based regulators due to its operations. Earlier this year, Robinhood was ordered to pay a fine of over $10 million for reporting operational deficiencies that adversely affected investors during the COVID-19 crisis.
• It was also fined $30 million last summer by the New York State Department of Financial Services (NYDFS) for violating anti-money laundering and cybersecurity laws.
• The agency also found “significant failings” in the firm’s compliance program and allegedly followed policies that were not in line with NYDFS’s virtual currency and cybersecurity regulations.

Robinhood Markets is weighing in on its crypto offerings, according to Dan Gallagher, the firm’s legal head, amid an intensifying crackdown on the industry.

The move comes as the securities regulator targeted a broad swath of the digital asset market, launching a pair of lawsuits against two heavyweights – Binance and Coinbase – which together account for half of the global trading of cryptocurrencies.

• While testifying before the House Agriculture Committee, a meeting Focusing on digital assets, Gallagher, a former SEC commissioner, said Robinhood is “actively reviewing” the U.S. Securities and Exchange Commission’s (SEC) analysis “to determine what, if any Action should be taken.”
• Robinhood, on the other hand, gives users access to 18 different digital assets, including Solana (SOL), Cardano (ADA), and Polygon (MATIC), which are now being considered unregistered securities based on SEC filings this week.
• While the NASDAQ-listed investment company’s trove of crypto is relatively limited compared to Binance and Coinbase, it has been keen not to attract the attention of the SEC.
• The brokerage firm was already in trouble with several US-based regulators due to its operations. Earlier this year, Robinhood was ordered to pay a fine of over $10 million for reporting operational deficiencies that adversely affected investors during the COVID-19 crisis.
• It was also fined $30 million last summer by the New York State Department of Financial Services (NYDFS) for violating anti-money laundering and cybersecurity laws.
• The agency also found “significant failings” in the firm’s compliance program and allegedly followed policies that were not in line with NYDFS’s virtual currency and cybersecurity regulations.