The US Securities and Exchange Commission (SEC) has been cracking down on major crypto exchanges, causing rapid market reactions. Binance and Coinbase were hit with lawsuits last June, leading to a massive withdrawal of assets and a significant loss of market value.

Despite this, Robinhood has remained stable, with its shares barely moving after receiving a Wells notice from the SEC.The SEC, led by Chairman Gary Gensler, has been intensifying its efforts against crypto companies, launching an average of two cases per month.

The regulator argues that most cryptocurrencies should be considered securities, while exchanges argue they should be considered commodities. Gensler's term ends in 2026, and investors are watching closely to see how the legal battles play out.

Despite the regulatory pressure, crypto trading has become a significant source of revenue for platforms like Robinhood. In the first quarter, crypto trading accounted for 20% of Robinhood's total revenue, reaching a record $126 million.

This figure represents a significant increase from the same period last year and surpassed revenue generated from stock trading. The growth in crypto trading also helped reach approximately 13.7 million active users, the highest level in nearly two years.