The Robinhood brand is seen displayed on a smartphone display towards a pc display displaying inventory market graphs on Oct. 10, 2024.
Dominika Zarzycka | Nurphoto | Getty Pictures
The Securities and Change Fee is dropping its investigation into Robinhood’s crypto arm, the corporate revealed Monday.
Robinhood stated it acquired a letter from the SEC’s Enforcement Division Friday, detailing in a weblog submit that the company has closed its investigation into the crypto enterprise with no intention of shifting ahead with an enforcement motion. The information comes three days after Coinbase equally introduced that the SEC has agreed to finish its enforcement case towards it.
In Might 2024, Robinhood acquired a discover warning that it might be charged for potential violation of securities regulation inside its crypto unit after beforehand being subpoenaed for its cryptocurrency listings, custody and platform operations – regardless of “years of excellent religion makes an attempt to work with the SEC for regulatory readability together with our well-known try to ‘are available and register,'” Dan Gallagher, the corporate’s chief authorized, compliance and company affairs officer, stated on the time.
“Robinhood Crypto at all times has and can at all times respect federal securities legal guidelines and by no means allowed transactions in securities,” he stated in a press release Monday. “We respect the formal closing of this investigation, and we’re pleased to see a return to the rule of regulation and dedication to equity on the SEC.”
The SEC didn’t reply to a request for remark.
The SECs dismissal of the Robinhood and Coinbase circumstances is an early signal of the regulatory sea change for the crypto trade promised by President Donald Trump throughout his election marketing campaign. Regardless of the meteoric rise of the worth of bitcoin below the earlier administration, many crypto companies noticed it as low level as a result of SEC’s infamous regulation-by-enforcement strategy to crypto – versus the creation of clear guidelines by which to function – below the management of then chair Gary Gensler.
Almost half of Robinhood’s $672 million transaction-based income within the fourth quarter got here from a 700% rise in income tied to crypto buying and selling, as bitcoin continued rallied towards $100,000 for the primary time ever on hopes of extra favorable insurance policies below Trump.
Shares have gained 38% to date in 2025.
