Robinhood Markets Inc. said the Securities and Exchange Commission was probing its cryptocurrency business, in the latest signal that the regulator is drilling deeper into virtual asset platforms.
The brokerage received an investigative subpoena in December related to its cryptocurrency listings and custody, among other topics, Menlo Park, California-based Robinhood said Monday in a filing. The SEC inquiry came shortly after crypto exchange FTX filed for bankruptcy, spurring a wave of regulatory action.
The probe comes as U.S. financial watchdogs take a more aggressive approach to crypto in the wake of FTX's collapse. In the months following FTX's November bankruptcy, top financial watchdogs have fanned out across the industry, extracting major penalties and issuing broad warnings.
A spokesperson for the SEC declined to comment. A representative for Robinhood did not immediately respond to a request for comment.
