Robinhood, a retail trading giant, is set to acquire Bitstamp, a well-known crypto exchange, for $200 million, despite facing scrutiny from the SEC earlier this year. Bitstamp, founded in 2011, boasts over 50 licenses globally and has built a strong reputation among retail and institutional investors.
Johann Kerbrat, Robinhood’s general manager of crypto, sees the acquisition as a significant move in expanding their crypto business. He highlights Bitstamp’s reliability and global presence as key factors in the decision. The deal, however, is still awaiting regulatory approval and is expected to close in the first half of next year.
In light of the Wells Notice issued by the SEC in May, Robinhood remains confident in their compliance with regulations. Dan Gallagher, the company’s chief legal officer, maintains that the assets on their platform are not securities and looks forward to clarifying this with the SEC.
CEO Vlad Tenev criticizes the SEC’s enforcement-focused approach, calling for regulatory changes to accommodate crypto assets. He expresses disappointment in the SEC’s reluctance to adapt to the evolving landscape of digital assets.
As the deal progresses, investors are urged to exercise caution and conduct thorough research before engaging in high-risk investments in Bitcoin or other cryptocurrencies. The Daily Hodl emphasizes the importance of due diligence and stresses that all trading activities carry inherent risks.
