Robinhood, a prominent retail trading giant, is set to acquire Bitstamp, a well-known crypto exchange platform, for around $200 million, despite facing scrutiny from the U.S. Securities and Exchange Commission (SEC) earlier this year.

In a recent announcement, Robinhood revealed its plans to purchase Bitstamp, a platform established in 2011 with more than 50 active licenses and registrations worldwide. Johann Kerbrat, the general manager of crypto at Robinhood, expressed excitement about the acquisition, stating that it marks a significant milestone in the expansion of their crypto business. He praised Bitstamp for its reputable and resilient global exchange that has earned the trust of both retail and institutional crypto investors.

While the deal is still pending regulatory approval, Robinhood aims to finalize the acquisition in the first half of next year. The SEC had issued a Wells Notice to Robinhood in May, indicating possible legal action against the company. Despite this, Dan Gallagher, the chief legal officer at Robinhood, remains confident that their platform does not deal with securities and is prepared to address any concerns raised by the SEC.

CEO Vlad Tenev criticized the SEC for its enforcement-based approach to regulation, arguing that the agency should consider amending rules to better accommodate crypto assets. He expressed disappointment in the SEC’s reluctance to adapt to the changing landscape of digital assets.

As the industry continues to evolve, Robinhood remains committed to providing a seamless and secure trading experience for its customers. Investors are advised to conduct thorough research before engaging in high-risk investments in Bitcoin, cryptocurrency, or digital assets. The Daily Hodl does not offer investment advice and encourages individuals to exercise caution when trading cryptocurrencies.