Robinhood, the crypto trading platform, is engaged in discussions with the US Securities and Exchange Commission (SEC) following a warning issued by the regulator in May.
During an interview with Bloomberg Television, CEO Vlad Tenev disclosed that the company has submitted a response to the SEC’s Wells Notice concerning its cryptocurrency operations and the potential for regulatory actions.
Response to SEC Notice
A Wells Notice is a communication from the SEC to notify a company about potential civil or administrative actions being considered. Robinhood has responded to this notice, with Tenev stressing the effort put into ensuring a high-quality response. The notice is linked to Robinhood’s cryptocurrency business as it navigates regulatory challenges in the US.
Tenev highlighted the company’s commitment to addressing regulatory concerns meticulously and transparently, without revealing specific details.
Positive Retail Buying Trends
Following increased retail trading during the market frenzy of 2020, Robinhood has diversified its offerings into products like retirement plans, credit cards, and international crypto ventures.
Despite operational issues faced by competitors amid recent market downturns, Tenev assured stakeholders of Robinhood’s robust technological infrastructure that stood firm during market volatility.
While acknowledging challenges faced by Blue Ocean ATS, its execution venue, Tenev assured customers of efforts to resume overnight trading promptly.
With the crypto market capitalization surpassing $2 trillion post a recent dip, Bitcoin’s price is approaching the $60,000 mark post a drop to $49,000 on Monday.
