Trading app giant Robinhood is issuing a warning about the potential damage future crypto regulations could do to its business.
In an amendment to an S-1 Form filed with the U.S. Securities and Exchange Commission (SEC), the financial services company lays out the numerous risks related to its cryptocurrency products and services.
Some of those risks involve the haziness surrounding what future industry regulations might look like, according to Robinhood.
Customers began testing cryptocurrency wallets on Robinhood this month. In September, the trading platform rolled out a new feature that allows crypto investors to buy digital assets commission-free on a recurring basis.
In the SEC filing, Robinhood notes that it can’t guarantee that the company’s wallets will be protected. The trading platform says it holds the “overwhelming majority” of its crypto in storage, but also uses wallets to support day-to-day operations.
In January, Robinhood restricted its customers from buying crypto altogether, citing “extraordinary market conditions.” The firm also halted users from buying shares in Gamestop (GME), which rapidly rose in price after a flurry of retail trading buzz on Reddit.