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 (HOOD) 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 court filings.
The Wells Notice is a letter sent from the securities regulator that concludes the conclusion of its investigation over the respondent, in this case, Robinhood’s United States-based crypto business.
