Robinhood’s crypto arm is in hot water with the SEC

TheStreet’s Conway Gittens brings the latest business news from the New York Stock Exchange as markets close for trading on Monday, May 6.

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Full Video Transcript Below:

CONWAY GITTENS: This is Conway Gittens, reporting from the New York Stock Exchange. Here’s what we’ll be watching on TheStreet today.

Wall Street gained momentum on Monday following the stock market’s first back-to-back weekly gains since March. Investors are hoping that a cooling in hiring could lead the Fed to cut interest rates in early September. The Dow rebounded for the fourth consecutive session. Meanwhile, the S&P 500 was up one percent and the Nasdaq was up one percent.

Investors are bracing for earnings from Walt Disney on Tuesday. The most important topic for Wall Street: New subscriber numbers for Disney’s streaming service, Disney+. In other business headlines, Robinhood’s crypto division is in trouble with the Securities and Exchange Commission.

The company said it had received notice from the SEC of an enforcement action known on Wall Street as the “Wells Notice.” Focus of notification: Crypto tokens traded on Robinhood.

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The SEC has taken a tough stance against crypto companies, claiming that most digital tokens should be regulated as securities and therefore subject to SEC registration rules. However, the crypto industry takes a different view and accuses the SEC of being too aggressive.

Dan Gallagher, Robinhood’s Chief Legal Compliance and Corporate Affairs Officer, said in a statement: “We firmly believe that the assets listed on our platform are not securities and we look forward to engaging with the SEC to clarify how weak any case against Robinhood Crypto would be.” . to be.”

Even though the SEC sent a warning to Robinhood, that doesn’t mean the company knowingly did anything wrong.

This will be enough for your daily briefing. From the New York Stock Exchange, I’m Conway Gittens from TheStreet.

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