SEC warning letter to Robin Hood, Bitcoin drops...crashes to $6.4k.
Bitcoin collapsed to $64,000 on news that the Securities and Exchange Commission (SEC), the U.S. securities regulator, has sent a “wealth notice” to Robin Hood, the mecca of American ants (retail investors), regarding cryptocurrency (virtual currency) trading. Bitcoin is currently trading at $63,279 on CoinMarketCap, a global coin marketplace, down 1.09% from 24 hours ago. On the day, Bitcoin traded between a high of $65,494 and a low of $62,746.
Bitcoin broke above the $65,000 mark, but reversed course after the SEC sent a Wells Notice to Robinhood. A Wells Notice is an advance notice from the SEC to a company or individual that is the subject of a civil action, demanding an explanation. It is an advance notice from the SEC to a company or individual suspected of engaging in illegal financial transactions, giving them an opportunity to respond before filing a lawsuit.
Well means defense counsel. It means that the SEC will give the company or individual a chance to defend itself against allegations that it engaged in illegal financial transactions, and if the defense is insufficient, a formal lawsuit will be filed. In other words, the SEC sent Robinhood a warning letter. This news seems to have reversed Bitcoin's decline. As Bitcoin has fallen, so have most other cryptocurrencies.
