Robinhood was trying to stop an enforcement action alleging the platform encourages inexperienced users to make risky trades without safeguarding limits.
The anonymous individual had asked Cape Cod Healthcare if they could accept bitcoin donations in January.
The Massachusetts Securities Division reportedly wants Robinhood to better protect its inexperienced traders.
The U.S. state of Massachusetts halted five token sales, alleging all involved the sale of unregistered securities.
Massachusetts' securities enforcement office is suing a resident and his company for selling unregistered securities in a token sale.
The top securities regulator in Massachusetts raised concerns on the bitcoin bubble and called the bitcoin market "entirely speculation."