SEC Warns Robinhood That Its Crypto Business Faces Lawsuit (2)

The US Securities and Exchange Commission warned Robinhood Markets Inc. that it faces an enforcement action over its crypto business — the latest sign that the regulator isn’t letting up on its years-long crackdown on digital assets.

Robinhood, which is best known for stock trading, said on Monday that the SEC’s enforcement staff had sent the firm a Wells notice, indicating that it made an initial determination to recommend enforcement action. The company’s shares rose as much as 2.8% in New York.

The company will have the opportunity to respond to the SEC’s allegations before the regulator takes any action. ...