Lawyers representing cryptocurrency and stock trading app Robinhood faced off against those for the Secretary of the Commonwealth for Massachusetts over the legality of a state regulation that could affect how the company markets itself to potential investors.

This new feature will allow Robinhood customers to fund Web3 wallets without leaving the dApps or their Robinhood Crypto accounts.

Robinhood Introduces Robinhood Connect To Enhance DeFi Accessibility; Circle Policy Head Shares Key Predictions on Potential Digital Euro; Shiba Inu Whales Unload Billions Amid SHIB Price Retreat

Popular trading app Robinhood has introduced a new feature called Robinhood Connect, which will allow users of its crypto wallet to access their funds and credentials directly from decentralized finance (DeFi) protocols and applications.

Robinhood, the retail trading platform, is set to pay up to $10.2 million in penalties for operational and technical failures that harmed investors, according to an announcement from the California Department of Financial Protection and Innovation. The multi-state settlement followed a North American Securities Administrators Association investigation into Robinhood platform outages in March 2020. The investigation found deficiencies in Robinhood's review and approval process for options and margin accounts, weaknesses in monitoring and reporting tools, and insufficient customer service and escalation protocols. This isn't Robinhood's first multi-million dollar penalty, as the platform has paid settlements to the New York State Department of Financial Services and the U.S. Securities and Exchange Commission for regulatory violations, and a fine from the Financial Industry Regulatory Authority for failing to protect customers.

The investigation was triggered by platform outages in March 2020 and issues prior to March 2021, causing users to face difficulties in processing trades during stock value fluctuations.

The California Department of Financial Protection and Innovation said that the company behind cryptocurrency and stock trading platform Robinhood will likely pay more than $10 million in penalties “for operational and technical failures that harmed main street investors.”

Coinbase CEO Brian Armstrong sold Coinbase shares prior to receiving a warning from the Securities and Exchange Commission (SEC)

Crypto platform Ziglu is talking with buyers interested in acquiring it for a lower price following the collapse of its acquisition deal with Robinhood (HOOD), Sky News reported on Thursday.

USDC withdrawals on Robinhood remain unaffected.