Robinhood Markets Inc. and its affiliated broker-dealers have agreed to settle charges brought by the U.S. Securities and Exchange Commission (SEC) for violating federal securities laws.
The settlement comes as the SEC prepares for a leadership change, potentially signaling a shift in crypto regulation.
The SEC accused Robinhood Securities LLC and Robinhood Financial LLC of several infractions, including delays in reporting suspicious trading, weak identity theft protections, and inadequate measures to address unauthorized access to its systems. The settlement requires Robinhood to pay $45 million in penalties.
Sanjay Wadhwa, acting director of the SEC’s Division of Enforcement, emphasized the importance of broker-dealers adhering to their legal obligations to protect investors and maintain market integrity.
Robinhood Crypto, the company’s digital asset division, received a Wells Notice from the SEC in 2024 for allegedly violating securities laws with its crypto listings. However, no formal lawsuit has followed, and with a new administration set to take over, the case’s future remains uncertain.
Despite regulatory pressures, Robinhood has continued expanding its crypto operations, including working on a potential stablecoin. CEO Vlad Tenev recently commented on the incoming SEC Chair Paul Atkins, expressing optimism about a more supportive regulatory environment.
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