Robinhood has said that it is disappointed after receiving a Wells notice from the US Securities and Exchange Commission (SEC) regarding its cryptocurrency business.

A Wells notice is a letter sent by the Commission following an investigation into a firm which informs them that it is planning to bring enforcement action against them.

“After years of good faith attempts to work with the SEC for regulatory clarity including our well-known attempt to ‘come in and register,’ we are disappointed that the agency has decided to issue a Wells Notice related to our US crypto business,” said Dan Gallagher, chief legal, compliance and corporate affairs officer, Robinhood. “We firmly believe that the assets listed on our platform are not securities and we look forward to engaging with the SEC to make clear just how weak any case against Robinhood Crypto would be on both the facts and the law.”

The trading platform said that its crypto arm has made "difficult choices" not to list certain tokens or provide products, such as lending and staking, after the SEC previously alleged were securities in public actions against other platforms.

It added that it had "heeded the SEC’s calls" and attempted to register a special purpose broker-dealer with the agency.

Despite the anticipated enforcement action, the company assured customers that Robinhood Crypto is "here to stay" and that it would continue "fighting for regulatory clarity".

---