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SEC Warns Robinhood That Its Crypto Business Faces Lawsuit

The US Securities and Exchange Commission warned Robinhood Markets Inc. that it faces an enforcement action over its crypto business — the latest sign that the regulator isn’t letting up on its years-long crackdown on digital assets.

Robinhood, which is best known for stock trading, said on Monday that the SEC’s enforcement staff had sent the firm a so-called Wells notice, indicating that it made an initial determination to recommend enforcement action. The company’s shares fell more than 2% in premarket trading.

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