Robinhood (NASDAQ:HOOD) just lately acquired a Wells Discover from the Securities and Change Fee, which was surprising given the corporate’s conservative method to cryptocurrency listings, in response to a KBW analysis report launched on Monday.
KBW highlighted that Robinhood provides a comparatively modest collection of fifteen cryptocurrencies on its U.S. platform, in distinction to some opponents who checklist over 2 hundred digital belongings. Analysts led by Kyle Voigt consider that Robinhood’s crypto operations within the U.S. will stay unchanged, they usually anticipate the SEC will doubtless file a lawsuit within the coming months.
“Our preliminary evaluation means that Robinhood would choose to contest the SEC in courtroom and stands a greater likelihood of prevailing than a lot of its U.S. friends, ought to they face related challenges. That is due partly to Robinhood’s stringent itemizing standards,” the KBW report said.
Cryptocurrency buying and selling accounts for 12% of Robinhood’s complete income. KBW speculates that the SEC’s focus is likely to be on a selected group of digital belongings supplied on the platform. From a income danger standpoint, probably the most important state of affairs could be if the SEC decides to categorise Ethereum as a safety, because it represents roughly 25% of Robinhood’s crypto buying and selling quantity.
The brokerage maintains a market carry out score on Robinhood’s inventory with a goal value of $20. Following the information, Robinhood’s shares noticed a slight enhance, buying and selling up by 1.3% early Tuesday, at round $18.
Based on KBW, Robinhood shareholders might not obtain a definitive decision on the potential authorized case till late 2025 on the earliest, drawing parallels to the continuing regulatory proceedings in opposition to Coinbase (NASDAQ:COIN).
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