HOOD Ceases Support for Securities-Labeled Tokens Mentioned in SEC Lawsuit on Robinhood Platform.
Robinhood Markets’ chief compliance lawyer Dan Gallagher testified that his company had complied with the Securities and Exchange Commission’s (SEC) requirement to register but was later told by the agency that their efforts were unsuccessful. The company went through a 16-month process trying to register a special purpose broker dealer before being informed in March that their efforts would not bear any fruit. This comes after a series of controversies surrounding Robinhood, such as the temporary suspension of trading during the Gamestop frenzy earlier this year and the SEC’s investigation into its payment for order flow practices. Despite their compliance, Robinhood was unsuccessful in receiving approval from the SEC, and further updates on the matter have yet to be reported.