Robinhood Markets Inc. has become the next crypto trading platform to receive a threat of legal action from the Securities and Exchange Commission (SEC), adding to the sizable list of industry giants on the agency’s hit list.

In a Form 8-K filed on Saturday, the company said it received a Wells Notice from the SEC on May 4.

Allegations Against Robinhood

Specifically, SEC staff disclosed that they’d reached a “preliminary determination” to recommend the agency to file a lawsuit “alleging violations of Sections 15(a) and 17A of the Securities Exchange Act of 1934.”

Per the SEC’s website, Section 15(a) makes it unlawful for broker-dealers to effect or induce the purchase or sale of securities unless that broker is registered with the SEC. Meanwhile, Section 17A pertains to defrauding customers of their money through material misstatements or omissions.

Remedies may include “an injunction, a cease-and-desist order, disgorgement, pre-judgment interest, civil money penalties, and censure, revocation, and limitations on activities,” the filing stated.

Robinhood wrote on Monday that it was “disappointed” with the SEC’s decision after “years of good faith attempts” to comply and register.

“We firmly believe that the assets listed on our platform are not securities and we look forward to engaging with the SEC to make clear just how weak any case against Robinhood Crypto would be on both the facts and the law,” said Dan Gallagher, Chief Legal, Compliance and Corporate Affairs Officer of Robinhood.

Robinhood’s stock, HOOD, remained relatively unaffected on Monday, trading 1.14% above Friday’s close at $18.16.

The SEC’s Next Crypto Target

Robinhood first received an investigative subpoena from the SEC in February 2023 related to its crypto operations.

In June, the exchange delisted popular crypto assets including Cardano (ADA), Solana (SOL) and Polygon (MATIC) from its platform after the SEC pressed similar charges against Binance and Coinbase asserting that those assets were unregistered securities.

Kraken was also charged for listing securities on its platform in November, despite electing to pay a $30 million fine for alleged securities violations related to its staking service earlier that year.

This time, Kraken and others have chosen to fight back against the SEC in court, joining a chorus of other firms claiming the digital assets on their platforms do not qualify as investment contracts.

Beyond centralized trading platforms, the SEC also threatened to sue decentralized exchange developer Uniswap Labs in April and is now battling Ethereum infrastructure provider Consensys over Ether (ETH)’s status as a security.

“It seems like they’re abusing the Wells process as a scare tactic now,” wrote Jake Chervinsky, Chief Legal Officer at crypto VC firm Variant Fund, to Twitter on Monday.

“The SEC allocates a grossly disproportionate amount of its resources to crypto, given that its actual purpose is to regulate equity and debt markets,” he added. “Every minute and taxpayer dollar spent on crypto is one not spent on the real mission that Congress created the SEC to pursue.”

TL;DR

• DOT experiences a 10% weekly price surge, with bullish predictions suggesting potential spikes to $10 and beyond, particularly if it surpasses certain key resistance levels.
• Analysts previously envisioned further impulses for the asset, with forecasts ranging from $15.80 to a staggering $100.

How High Can DOT Jump?

Polkadot’s native cryptocurrency – DOT – has been among the best performers in the digital asset market lately, registering a 10% price increase on a weekly scale.

The popular entrepreneur, using the X handle Ted, recently argued that the token is retesting a major support zone. He believes DOT’s value could spike to $10 in the next few months if it surpasses the $7 mark. Recall that the asset crossed that level over the weekend.

CRYPTOWZRD and Jesse Olson outlined bullish predictions, too. The former thinks that the next bull run will start once DOT exceeds $9.60. 

“Above $9.60, we get another bullish impulse towards $15.80. Wave five is coming stronger… and most are going to miss it,” the analyst envisioned.

Jesse Olson went even further, claiming that DOT’s current condition offers investors the same buying opportunity as the one observed six months ago. The asset’s price stood at less than $5 at the start of November and pumped to almost $12 in mid-March. 

The Previous Predictions

Crypto analysts have recently become increasingly active in outlining DOT forecasts. The popular X user Ash Crypto (who has over one million followers) and Michael van de Poppe are among those who chipped in.

The former admitted still holding his DOT stash, raising hopes for a price rally toward a two-year high of $15. Michael van de Poppe maintained that Polkadot has shown “fundamental progress” over the years, claiming that “rotation is near.” He also revealed that he was adding the asset to his personal portfolio.

The most optimistic analyst to touch upon DOT is the crypto enthusiast Thomas Kralow. He predicted a price explosion towards the staggering $100 during the next bull run.

[PRESS RELEASE – Dubai, UAE, May 3rd, 2024]

Blockchain Sports, an international sports project, leverages cutting-edge technologies including IoT, AI, VR, and blockchain to innovate the global football industry. The initiative was introduced at a significant event at the Coca-Cola Arena in Dubai, drawing an audience of over 5000 attendees.

The project has garnered the support of renowned football veterans such as Kevin Kuranyi, Zico, Romario, David Trezeguet, Wesley Sneijder, and Marco Materazzi, who serve as ambassadors and curators, enhancing the project’s credibility and outreach.

Dmitriy Saksonov, CEO of Blockchain Sports, along with his team, has successfully established three football academies in Brazil located in Rio De Janeiro, Acopiara, and Sobral. These academies focus on discovering and nurturing football talent from local communities. Additionally, the Brazilian government has shown their support for the project.

The core product of Blockchain Sports is Atleta Network, a layer-1 blockchain solution tailored for the sports industry. Atleta introduces a pioneering approach to athlete management through tokens representing digital versions of Blockchain Sports Academy players. This process, known as athlete tokenization, aims to create a new paradigm for a broader market participation and athlete support.

The Athlete Tokenization process includes five stages:

• Stage 1: Talent Identification – Athletes undergo a thorough evaluation using IoT sensors during training and games, analyzing key performance metrics to determine their potential.
• Stage 2: Trust Building – Collaboration with athletes’ organizations ensures the provision of reliable data and the transparency of the tokenization process.
• Stage 3: Token Creation – Athletes are digitized into unique tokens using the ERC-1155 standard, establishing a digital ownership model.
• Stage 4: Ecosystem Support – To maintain a balanced ecosystem, 20% of the tokens are made available to the public, with the remainder held in escrow to support liquidity in the marketplace.
• Stage 5: Initial Athlete Offering (IAO) – This final stage allows the public to purchase tokens, facilitating direct support of athletes by fans.

Blockchain Sports is not just transforming athlete management but also making it easier for users to participate in the sports market while also supporting young and promising athletes outside traditional sponsorship models. The project empowers athletes with greater control over their careers and offers users new ways to connect with and support their favourite players.

Visit Blockchain Sports for more information on their academies, partnerships, and upcoming products.

About Blockchain Sports

Blockchain Sports is the first international sports project building the future of world football, by combining advanced IoT, AI, VR, and blockchain technologies. In three football academies located across Brazil more than 2 hundred teenage football players from low-income families are honing their football skills. Under the guidance of professional coaches and control of new technologies, these promising players are training to become the world’s top footballers within a few years.

The core component of the BCS ecosystem – is Aleta Network – the world’s first blockchain solution tailored for the sports industry. The Atleta Network can serve both enterprises and regular users. Sports organizations can use it to develop smart contracts, issue tokens, and enhance financial operations with high transparency. Users can support their favorite players’ career paths via smart contracts, buy digital collectibles of BCSports academies’ players, and get rewards for their favorite players’ professional achievements. Learn how to use the network from Atleta Whitepaper.

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