The United States Securities and Exchange Commission (SEC) is probing Robinhood Markets Inc. over its cryptocurrency business.
A regulatory filing released on Monday revealed that the firm received a subpoena in December 2022 about its cryptocurrency listings and custody.
It was gathered that the probe was to understand whether Robinhood provided adequate disclosures to its customers regarding its trading services.
“Any particular cryptocurrency’s status as a “security” is subject to a high degree of uncertainty and if we have not properly characterized one or more cryptocurrencies, we might be subject to regulatory scrutiny, investigations, fines, and other penalties,” Robinhood said.
The firm added that it had received similar subpoenas from the California Attorney General’s office regarding its “trading platform, business and operations, custody of customer assets, customer disclosures, and coin listings.”
