FTX filed for bankruptcy in November, which spurred an intervention from regulators around the world and dealt a blow to investor sentiment in the sector. The SEC has maintained that pre-existing securities laws also apply to digital assets and that many crypto tokens meet the definition of a security, which the crypto industry has previously criticized.
Robinhood said the subpoena it received from the SEC was
regarding the supported currencies at Robinhood Crypto LLC,
which is a wholly-owned subsidiary of the brokerage, as well as
its custody of cryptocurrencies and other platform operations.
Earlier this month, Robinhood also said it planned to
repurchase its shares from Sam Bankman-Fried's Emergent Fidelity
Technologies as U.S. prosecutors were in the process of seizing
its shares tied to the former FTX CEO.
(Reporting by Anirban Chakroborti in Bengaluru; Editing by
Krishna Chandra Eluri)