In light of recent regulatory actions, JPMorgan analysts remain confident that the SEC's scrutiny of Robinhood (NASDAQ:HOOD) Crypto will not impede the approval of spot Ethereum ETFs.
What Happened: This perspective comes even as the retail brokerage faces potential enforcement from the SEC for its dealings in what are alleged to be unregistered securities, The Block reported.
Earlier this week, Robinhood announced that it had received a Wells notice from the SEC, which suggests impending enforcement actions related to its cryptocurrency operations.
Robinhood Crypto allows trading in a variety of cryptocurrencies, including Bitcoin and Ether, among others.
According to Nikolaos Panigirtzoglou and his team at JPMorgan, this development reflects ongoing efforts by the SEC to assert that most cryptocurrencies, with the possible exceptions of Bitcoin and Ether, should be regulated as securities.
“In our opinion, it does not look like the Wells notice should pose an obstacle to an eventual approval by ...