The SEC is planning to file an “enforcement action” against Robinhood’s cryptocurrency business, according to the Wells notice.
The United States Securities and Exchange Commission (SEC) has issued a Wells notice to the popular trading platform Robinhood.
Following the news of the Wells notice, Robinhood’s share price fell 2.5% in pre-market trading to $17.95 as of 12:50 pm UTC. The Wells notice was issued on May 4, according to a court filing.
The Wells notice is a letter sent from the securities regulator that concludes its investigation of the respondent, in this case, Robinhood’s U.S.-based crypto business.