In a regulatory filing on Monday, Robinhood Markets Inc said that in December it received an investigative subpoena from the Securities and Exchange Commission relating to listings of cryptocurrencies.
2022 saw a raft of cryptocurrency-related entities collapse, the biggest of which being Sam Bankman-Fried’s FTX exchange. The collapses were both triggered by, and spurred on, a massive rout of the entire sector, leaving investors beaten and battered and creditors facing billions of dollars in losses.
In November FTX filed for bankruptcy, which spurred regulators around the world to launch interventions into the sector which have devastated investor sentiment.
The SEC has come to maintain that pre-existing securities laws are applicable to digital assets, and that many crypto-tokens meet the definition of a security. The crypto-sector has criticized that position.
According to Robinhood, the subpoena it received from the SEC was in regard to the supported currencies at Robinhood Crypto LLC, a wholly-owned subsidiary of the brokerage, its custody of cryptocurrencies, as well as other platform operations.
Robinhood has also revealed earlier this month it plans to repurchase the shares owned by Sam Bankman-Fried’s Emergent Fidelity Technologies, which US prosecutors were in the process of seizing from the failed cryptocurrency entrepreneur.