Trading and brokerage app Robinhood was served a subpoena by the U.S. Securities and Exchange Commission (SEC) over its crypto services.
The company said SEC’s legal action could cause it to halt trading services for digital assets on its platform.
The subpoena specifically concerns Robinhood’s crypto listings and crypto custody services.
- According to Robinhood, if the SEC or a court rules that any cryptocurrency supported by the platform is a security, it is prohibited from offering crypto trading services.
- Robinhood said the SEC served the subpoena shortly after popular crypto exchange FTX’s bankruptcy in November 2022.
- In an official statement, the firm claimed it offers trading services for certain cryptocurrencies not considered securities under U.S. federal and state securities laws.
In 2020, Robinhood had another legal conflict with the SEC after the agency accused the platform of deceiving customers about its revenue sources.
- At the time, the company had to pay $65M to settle SEC’s charges.
