Robinhood Response to Receipt of Wells Notice from the U.S. Securities and Exchange Commission

Robinhood Markets,Inc.(Nasdaq:HOOD) today announced that RHC has received a Wells Notice from the SEC Staff

Earlier today we announced Robinhood Crypto (RHC) has received a Wells Notice from the U.S. Securities and Exchange Commission staff indicating they will recommend that the Commission file an enforcement action.

“After years of good faith attempts to work with the SEC for regulatory clarity including our well-known attempt to ‘come in and register,’ we are disappointed that the agency has decided to issue a Wells Notice related to our U.S. crypto business,” said Dan Gallagher, Chief Legal, Compliance and Corporate Affairs Officer, Robinhood Markets, Inc. “We firmly believe that the assets listed on our platform are not securities and we look forward to engaging with the SEC to make clear just how weak any case against Robinhood Crypto would be on both the facts and the law.” 

Robinhood Crypto has made difficult choices not to list certain tokens or provide products, such as lending and staking, that the SEC previously alleged are securities in public actions against other platforms. Moreover, Robinhood heeded the SEC’s calls and attempted to register a special purpose broker-dealer with the agency. Read more on these efforts here.

Read the filed form 8-K here.

To our customers, this development will not affect your account or the services we provide.

Robinhood Crypto is here to stay and we’ll keep innovating, shipping products, and fighting for regulatory clarity for the good of the industry and our customers.

Cautionary Note Regarding Forward-Looking Statements

This announcement contains forward-looking statements, including with respect to potential action the SEC may take against RHC. Our forward-looking statements are subject to a number of known and unknown risks, uncertainties, assumptions, and other factors that may cause our actual future results, performance, or achievements to differ materially from any future results expressed or implied in this announcement. Factors that contribute to the uncertain nature of our forward-looking statements include, among others, the possibility of developments in our conversations with the SEC about RHC. Because some of these risks and uncertainties cannot be predicted or quantified and some are beyond our control, you should not rely on our forward-looking statements as predictions of future events. More information about potential risks and uncertainties that could affect our business and financial results is included in Part I, Item 1A of our Annual Report on Form 10-K for year ended December 31, 2023, as well as our other filings with the SEC, which are available on the SEC’s web site at www.sec.gov. Except as otherwise noted, all forward-looking statements are made as of the date of this announcement and are based on information and estimates available to us at this time. Except as required by law, we assume no obligation to update any of the statements in this announcement whether as a result of any new information, future events, changed circumstances, or otherwise. You should read this announcement with the understanding that our actual future results, performance, events, and circumstances might be materially different from what we expect.