Broker KBW said in a research note on Monday that the SEC's Wells notice to Robinhood (HOOD) was surprising given its very conservative approach to listing digital assets.
KBW noted that Robinhood only offers 15 cryptocurrencies on its U.S. platform, while some peers offer more than 200 digital assets.
Analysts led by Kyle Voigt wrote: "We do not expect changes to Robinhood's current U.S. crypto operations or asset listings and expect the SEC to file a lawsuit in the coming months. Our initial view is that Robinhood is likely to fight the SEC in court and has a higher chance of winning than most U.S. competitors (if in a similar situation) given Robinhood's stricter listing standards." (CoinDesk)