The Massachusetts Securities Division reportedly wants Robinhood to better protect its inexperienced traders.
The U.S. state of Massachusetts halted five token sales, alleging all involved the sale of unregistered securities.
The anonymous individual had asked in January if Cape Cod Healthcare could accept bitcoin donations.
Massachusetts' securities enforcement office is suing a resident and his company for selling unregistered securities in a token sale.
The top securities regulator in Massachusetts raised concerns on the bitcoin bubble and called the bitcoin market "entirely speculation."