Robinhood, a Fintech company, has issued a report affirming that it will comply the Security and Exchange Commission’s subpoena. This request asked Robinhood for information about its operations related to crypto listing and custody.
Robinhood Markets Inc. filed the annual 10-K report Monday. This is the operator of the Robinhood platform. The SEC is intensifying its scrutiny of cryptocurrency trading platforms following the recent wave of bankruptcies. This was in large part due to the collapse of FTX, which caused instability and negative perceptions across mainstream media. The SEC issued Robinhood a subpoena for compliance in December 2022. Robinhood is a U.S. registered company within the regulator’s scope. Subpoenas, legal orders, require subpoenaed entities to provide information. This information can then be used for determining whether legal action is possible or should be pursued.
Robinhood could face legal action if the SEC investigation is launched. This could result in Robinhood having to stop trading digital assets, particularly for portfolios that are related to crypto.