Robinhood reviews crypto offerings after US SEC crackdown

Published Wed, Jun 7, 2023 · 06:42 AM

ROBINHOOD Markets is taking a fresh look at its cryptocurrency offerings after the Securities and Exchange Commission (SEC) cracked down this week on two top digital asset trading platforms, Dan Gallagher, the firm’s legal chief, told Congress on Tuesday (Jun 6).

The brokerage is “actively reviewing” the regulator’s analysis “to determine what, if any, actions to take”, Gallagher, himself a former SEC commissioner, testified before the House Agriculture Committee during a meeting focused on digital assets.

The SEC sued Binance Holdings, the world’s biggest crypto exchange, and Coinbase Global, the largest in the US, over the past two days. In each lawsuit, the regulator said several tokens listed by the exchanges are unregistered securities.

Robinhood gives users access to a relatively limited list of crypto assets – they can choose from 18 different tokens, compared with hundreds on Coinbase. But some tokens that Robinhood offers – including Solana, Cardano and Polygon – are deemed by the SEC to be unregistered securities, based on the regulator’s lawsuits this week. BLOOMBERG