May 6, 2024

"CoinDesk Daily" host Jennifer Sanasie breaks down the biggest headlines impacting the crypto industry today, as Robinhood (HOOD) shares fell about 2.5% in premarket trading after its crypto arm received a Wells Notice from the SEC. Plus, new findings from Visa and data platform Allium Labs show that more than 90% of stablecoin transaction volumes aren’t coming from genuine users.

Video transcript

Robin Hood receives a wells notice from the SEC and a new group to guard against hacks. You're watching Coin Desk Daily, I'm your host, Jens Asi Robin Hood shares fell as news broke that the popular trading platform received a wells notice from the SEC on March 4th. The stock fell about 2.5% in pre market trading on Monday. In a filing, Robin Hood said the potential action from the agency may include a civil injunctive action, public administrative proceeding and or a cease and desist proceeding. Wells notices are preliminary warnings informing respondents of the charges the regulator is considering against them. They usually lead to enforcement actions. Robin Hood ended all support for Tokens named in SEC lawsuits brought against finance and Coinbase in June last year. According to a report codeveloped by Visa, more than 90% of stablecoin transaction volumes aren't coming from genuine users out of about $2.2 trillion in total transactions in April, just 149 billion originated from organic payments activity. The analysis removed transactions done by bots and large scale traders to quote isolate those made by real people. Visas head of credit. Kai Sheffield said in a note last month that there's a lot of noise in this data given that blockchains are general purpose networks where stample coins can be used across a range of use cases with transactions that can be initiated manually by an end user or programmatically through bots. Despite the discrepancy between transfer volume and bot adjusted transfer volume, the analysis found a steady growth of monthly active stablecoin users and crypto has a neighborhood watch to guard against hacks. Crypto is a, is the industry's first information sharing and analysis center. The full roster of crypto isa's founding members who are providing financial support for the organization will be revealed on stage at coin desk's consensus 2024 included in the list are two of the biggest exchanges, a major Stablecoin issuer and one of the best known custody firms. Get your tickets to consensus 2024 at consensus 2020 That's a wrap for coin desk daily. Get more updates on and we'll see you next time.

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