The SEC has issued Wells Notices to several crypto entities, including Robinhood's crypto division, indicating potential enforcement actions for securities violations.

Robinhood has previously cooperated with SEC regulations and attempted to register with the agency, yet it now faces a possible lawsuit over its crypto operations.

There is an ongoing debate in the US regarding the classification of crypto-assets as securities, with the SEC and industry players in disagreement.

SEC's scrutiny is part of a broader pattern of legal actions against the crypto industry, with at least one lawsuit filed per month against crypto companies since the previous November.

Despite regulatory challenges, investor interest in the crypto market remains high, as evidenced by KangaMoon's successful $6 million presale.

Robinhood's stock has seen a positive trend, rising 43.88% since the beginning of the year, and is up 1% in morning trading ahead of its quarterly results.