By Denny Jacob


Robinhood disclosed it received a notice from the Securities and Exchange Commission staff recommending that the regulator file an enforcement action against its cryptocurrency unit.

The digital brokerage said the recommendation from SEC staff in a "Wells Notice" stated it advised Robinhood Crypto that it made a "preliminary determination" to recommend that the SEC file an enforcement action against the unit for alleged violations of the Securities Exchange Act of 1934, according to a securities filing.

Robinhood noted that the potential action may involve a civil injunctive action, public administrative proceeding and/or a cease-and-desist proceeding and may seek remedies including an injunction, among other options.

Robinhood has previously disclosed that Robinhood Crypto received investigative subpoenas from the SEC regarding the unit's cryptocurrency listing, custody of cryptocurrencies and platform operations, among other topics.


Write to Denny Jacob at denny.jacob@wsj.com


(END) Dow Jones Newswires

05-06-24 0910ET