- SEC issued a Wells Notice againast Robinhood, alleging securities violations.
- Crypto prices reacted lower, with Bitcoin (BTC) retreating to under $64,000.
- KangaMoon (KANG), a new crypto project for play-to-earn and SocialFi, continued to attract investors.
Robinhood Markets Inc., the company behind the popular stock and crypto trading app, revealed it received a Wells Notice from the US Securities and Exchange Commission (SEC) on May 4.
While the news impacted the crypto market, with Bitcoin dipping from intraday highs above $65,000, analysts are bullish on BTC and other top altcoins. There’s also a lot of positive vibes around new crypto project KangaMoon (KANG).
SEC slaps Robinhood with a Wells Notice
The crypto market reacted lower on Monday after news that the US Securities and Exchange Commission (SEC) has issued a Wells Notice to popular trading app Robinhood.
The SEC alleges securities violations against Robinhood Crypto. In response, the company says it is open to engaging with the regulator.
“We firmly believe that the assets listed on our platform are not securities and we look forward to engaging with the SEC to make clear just how weak any case against Robinhood Crypto would be on both the facts and the law,” Robinhood’s chief compliance officer Dan Gallagher said.
SEC’s notice to Robinhood Crypto and market reaction
The market’s response showed a broader concern and dismay, and Bitcoin price slipped from highs above $65,000 to trade near $63,300. In the stock market, Robinhood’s share price fell more than 5%.
Following this latest Wells Notice to Robinhood Crypto, the SEC is now either looking to sue or has active lawsuits against multiple crypto companies. These include exchanges Coinbase, Binance, Kraken; DEX platform Uniswap, and Ethereum development studio Consensys.
SEC’s approach to crypto regulation has drawn sharp criticism from industry players, with many seeing it as gross overreach on the regulator’s part.
Jake Chervinsky, the chief legal officer at Variant, says the SEC is “abusing the Wells process as a scare tactic now.”
KangaMoon (KANG) steady amid increased interest
While the SEC’s strategy in regulating cryptocurrencies has raised concerns amid calls for clarity, the crypto investment community knows the industry is here to stay and continue to build top projects.
It’s a scenario…