​The Robinhood exchange is facing the risk of prosecution by the US Securities and Exchange Commission (SEC) due to violations of securities laws, after Robinhood received a Wells Notice from the SEC on May 4. .

In a filing on Monday, Robinhood said the SEC had issued a “preliminary report” before suing the company for alleged violations of Sections 15(a) and 17A of the Securities Exchange Act of 1934. .

However, Robinhood confirmed that the company has proactively stopped offering a number of tokens and products that the SEC considered securities in previous lawsuits against Binance and Coinbase: Cardano (ADA), Polygon (MATIC) and Solana (SOL).

Dan Gallagher, Robinhood's Chief Legal, Compliance and External Affairs Officer and former SEC commissioner, expressed frustration following efforts to cooperate with regulators:

“We believe the assets listed on the platform are not securities and look forward to working with the SEC to clarify the weakness of any allegations against Robinhood Crypto, both factually and legally. physical."

The Wells announcement is an official step by the SEC, signaling the end of the investigation and the possibility of further legal action. In Robinhood's case, the SEC will likely impose measures such as bans, civil penalties, and worse, restrictions on operations.

With a no-transaction fee policy, Robinhood is currently one of the most famous stock and cryptocurrency trading platforms, as well as attracting the most users in the US.

Despite receiving a Wells Notice from the SEC, shares of Robinhood (HOOD) recovered and rose about 2% on Monday. Previously, the stock price dropped 2.5% in pre-market trading after information from the SEC.