Robinhood (NASDAQ:HOOD) not too long ago acquired a Wells Discover from the Securities and Change Fee, which was surprising given the corporate’s conservative strategy to cryptocurrency listings, in response to a KBW analysis report launched on Monday.
KBW highlighted that Robinhood affords a comparatively modest number of fifteen cryptocurrencies on its U.S. platform, in distinction to some rivals who record 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 seemingly file a lawsuit within the coming months.
“Our preliminary evaluation means that Robinhood would choose to contest the SEC in court docket and stands a greater likelihood of prevailing than a lot of its U.S. friends, ought to they face comparable challenges. That is due partly to Robinhood’s stringent itemizing standards,” the KBW report acknowledged.
Cryptocurrency buying and selling accounts for 12% of Robinhood’s whole income. KBW speculates that the SEC’s focus may be on a selected group of digital belongings provided on the platform. From a income danger standpoint, essentially 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 ranking on Robinhood’s inventory with a goal value of $20. Following the information, Robinhood’s shares noticed a slight improve, buying and selling up by 1.3% early Tuesday, at round $18.
In line with KBW, Robinhood shareholders could not obtain a definitive decision on the potential authorized case till late 2025 on the earliest, drawing parallels to the continued regulatory proceedings towards Coinbase (NASDAQ:COIN).
Featured Picture: Megapixl ©Malirvik
Please See Disclaimer
