Crypto trading platform Robinhood remains in talks with the US Securities and Exchange Commission (SEC), after a warning letter issued by the financial regulator in May.

In a interview Speaking to Bloomberg Television, CEO Vlad Tenev announced that the company has filed a response to Wells’ SEC notice regarding its cryptocurrency activities, hinting at potential enforcement action from the regulator.

Robinhood CEO Emphasizes Robust Response

A Wells notice is a letter from the SEC informing a company that the regulator is considering taking civil or administrative action against the company.

Robinhood has since responded, with Tenev emphasizing that the company “spent a lot of time making sure the response rate was as high as possible.” The Wells notice reportedly pertained to Robinhood’s cryptocurrency company as the company navigates regulations in the US.

Tenev emphasized the efforts made to craft a “robust and accurate” response, and underscored the company’s commitment to answering regulatory questions with “the utmost care.”

While Tenev declined to provide further details, he reiterated the company’s commitment to maintaining transparency and compliance standards when navigating the regulatory landscape.

Tenev sees healthy retail purchases

Since the surge in retail activity amid the pandemic-induced market frenzy of 2020, Robinhood has been business portfolioand is expanding into areas such as pension products, credit cards and international crypto businesses.

By contrast, industry rivals such as Charles Schwab Corp. and Fidelity Investments faced operational challenges, including service disruptions, during the recent global stock market downturn, according to Bloomberg.

Tenev reassured stakeholders about Robinhood’s “resilient” technology infrastructure, noting the lack of significant disruptions during recent periods of market volatility. variability that affected competing platforms.

“Now that we’re seeing high volumes, we’re ready,” Tenev said. “Customers tend to buy the dip — there are more buyers than sellers, which we think is a good sign for the health of the retail market.”

However, the company did experience some challenges with its trading platform, Blue Ocean ATS, which had to suspend trading overnight as it could not handle the volume of market activity.

Tenev acknowledged that the “infrastructure effectively collapsed” and said the company is working to ensure Blue Ocean can enable overnight trading for all its customers as soon as possible.

As the crypto industry recovers from Monday’s stock market crash, the total market cap of cryptocurrencies has risen back above $2 trillion after briefly dipping to $1.69.

Bitcoin (BTC), on the other hand, led the rally, with its price inching closer to the $60,000 mark, which is crucial for the cryptocurrency’s outlook. It was trading as low as $49,000 on Monday.

Main image of DALL-E, chart from TradingView.com