• Robinhood Markets Inc. has received an investigative subpoena from the U.S. Securities and Exchange Commission (SEC) in December.
• The SEC’s move is part of a major crackdown against the digital asset industry after the dramatic collapse of Sam Bankman-Fried’s crypto empire last year.
• California Attorney General’s office had earlier served a similar subpoena to the trading platform regarding its trading platform, custody of customer assets, customer disclosures as well as coin listing.
SEC Issued Subpoena to Robinhood Over its Crypto Operations
Robinhood Markets Inc. has received an investigative subpoena from the U.S. Securities and Exchange Commission (SEC) in December, as part of a major crackdown against the digital asset industry after the dramatic collapse of Sam Bankman-Fried’s crypto empire last year.
Reason for SEC Subpoena
According to its latest 10-K filing, the subpoena is in regard to the supported assets at its subsidiary Robinhood Crypto LLC, as well as its custody of cryptocurrencies and other platform operations.
SEC Stance on Cryptocurrencies
The SEC previously maintained that the digital asset industry would not be spared by the pre-existing securities laws, thereby signaling that several tokens meet the definition of a security, a stance that the crypto industry vehemently opposed.
California Attorney General’s Office Subpoena
This isn’t the first time Robinhood had been subpoenaed by a regulatory watchdog in the country. A similar subpoena request was served by California Attorney General’s office regarding its trading platform, custody of customer assets, customer disclosures as well as coin listing.