KBW analyst: Robinhood is likely to win in cryptocurrency legal battle with SEC

PANews reported on May 7 that in response to the latest legal challenge from the U.S. Securities and Exchange Commission (SEC), KBW analysts believe that based on the current legal framework and case precedents, Robinhood has a strong chance of winning the lawsuit. KBW pointed out that Robinhood does not expect to change its current U.S. cryptocurrency business or asset list, and expects the SEC to file a lawsuit in the coming months.

Robinhood only offers 15 cryptocurrencies on its U.S. platform, compared with some competitors that offer more than 200 digital assets. The report said that Robinhood's crypto trading accounts for 12% of its revenue, and KBW expects the SEC to take action against a portion of the digital assets on the platform. Analysts said that Robinhood shareholders will not fully understand the results of potential legal proceedings until late 2025 at the earliest.