Robinhood’s Response to SEC Wells Notice on Crypto Business

Robinhood Markets (NASDAQ:HOOD) has formally addressed the U.S. Securities and Exchange Commission’s Wells notice concerning its cryptocurrency operations, as stated by CEO Vlad Tenev on Thursday.

In May, the digital trading platform’s crypto division revealed the receipt of a Wells notice from SEC staff. A Wells notice, though not a formal accusation, denotes the conclusion of an investigation and signals the preliminary stage before potential civil enforcement actions by the SEC.

“We’ve ensured that the response is of the highest quality,” Tenev shared in an interview with Bloomberg Television. No further updates were provided on the issue.

During the same interview, Tenev emphasized that Robinhood (HOOD) did not encounter major challenges “when the competition faced difficulties” amidst a global stock market downturn.

“Presently, we are well-prepared for high trading volumes,” he stated, as reported by Bloomberg. “Observing more buyers than sellers during market dips is indicative of a robust retail market health.”

Shares of Robinhood, headquartered in Menlo Park, California, exhibited a 3.3% gain during mid-afternoon trading on Thursday.