SEC’s Wells Notice Impacts Robinhood Crypto: Dogecoin (DOGE) Soars to $25 Million Valuation

• Robinhood Crypto has seen a significant outflow of Dogecoin (DOGE) following a Wells Notice from the U.S. Securities and Exchange Commission (SEC).
• Blockchain-tracking platform Bitcoinsensus reports that 164 million DOGE, equivalent to $25 million, was transferred out of Robinhood.
• Despite the news, the price of DOGE has remained relatively stable, trading at $0.149 at the time of writing.

Following a Wells Notice from the SEC, Robinhood Crypto experiences a significant outflow of Dogecoin (DOGE), with the meme asset’s price remaining stable despite the news.

DOGE Outflow from Robinhood

According to data from blockchain-tracking platform Bitcoinsensus, Robinhood Crypto has seen a significant outflow of the meme asset Dogecoin (DOGE) after the firm received a Wells Notice from the U.S. Securities and Exchange Commission (SEC). The data reveals that 164 million DOGE, worth approximately $25 million, was transferred out of Robinhood following the notice.

Understanding the Wells Notice

A Wells Notice is a warning issued by the SEC to an entity, indicating that legal action is imminent, although it does not imply any wrongdoing. Robinhood received its notice on May 6th. Crypto attorney Jake Chervinsky recently criticized the SEC for abusing its power by issuing Wells Notices as a scare tactic. However, Robinhood CEO Vlad Tenev has stated that the firm is prepared to challenge the SEC in court if necessary.

DOGE Price Remains Stable

Despite the news of the significant outflow, the price of DOGE has remained relatively stable. The digital asset is currently trading for $0.149, showing a fractional increase over the last 24 hours.

Conclusion

The outflow of DOGE from Robinhood Crypto following the SEC’s Wells Notice highlights the potential impact of regulatory actions on crypto markets. However, the stability of DOGE’s price suggests that the market has absorbed this news without significant disruption. As regulatory clarity continues to evolve in the United States, such events underscore the importance of monitoring regulatory developments for crypto investors and traders.