Bitcoin price was just recovering when bad news started to emerge. Investors who were hopeful today are now unhappy. A few minutes ago, Reuters delivered the bad news. The SEC, which has been initiating legal battles against crypto companies, has now targeted the Robinhood exchange.
Why Are Cryptocurrencies Falling?
The Robinhood platform, widely used by individual investors for stock and cryptocurrency investments, has long supported cryptocurrencies. However, like it has done with other crypto-related companies, the SEC is also going to sue it. According to an announcement made by Reuters a little while ago, the SEC sent a Wells Notice to Robinhood, which is a preliminary notification before a lawsuit. An official lawsuit is expected to be initiated soon.
“The SEC sent us a Wells Notice, which is a notification of a pending lawsuit regarding the cryptocurrency-related services we offer in the US. This has disappointed us.”
Following the news, the price of Bitcoin fell below $63,800. The SEC, which has sued dozens of companies including the Ethereum ecosystem, XRP, Binance, and Coinbase, believes there is no need for new rules in this area. Instead, it tries to discipline the industry through sanctions within the framework of 100-year-old laws. However, this approach has drawn criticism from its own members and judges alike.
