The Robinhood logo will be displayed on your smartphone screen against a computer screen showing stock market graphs on October 10th, 2024.
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The Securities and Exchange Commission has dropped an investigation into Robinhood’s crypto division, the company announced Monday.
Robin Hood He said he received a letter from the SEC’s executive branch on Friday, detailing in a blog post that the agency has no intention of proceeding with enforcement action and has concluded its investigation into the crypto business. The news comes three days after Coinbase announced that it had agreed to end its enforcement lawsuit against it.
Robinhood shares initially rose in the news, but lastly fell about 1.5% lower amid a wider pullback in stocks from the day’s highs.
Robinhood shares initially rose in the news, but were pulled back in a wider market.
In May 2024, Robinhood may be charged for potential violations of securities law within a Crypto unit after being previously summoned for Crypto Currency listings, custody and platform operation. I received it. Dan Gallagher, the company’s Chief Law, Compliance and Corporate Affairs Officer at the time, was for the clarity of regulations, including the well-known attempt to “enter and register.”
“Robinhood Crypto has and respects federal securities laws at all times and does not allow securities to be traded,” he said in a statement Monday. “We are grateful for the formal closure of this investigation and are pleased to see our return to the rule of law and to see our commitment to fairness in the SEC.”
A spokesman for the SEC declined to comment on the story.
The SEC’s firing in the Robinhood and Coinbase cases is an early indication of the regulatory ocean change in the crypto industry that President Donald Trump promised during his campaign. Despite rising meteor prices Bitcoin Under previous administrations, many crypto companies have been able to create clear rules, as opposed to the SEC’s infamous, regulatory-by-regulation-enforcement-by-regulation approach, under the leadership of then-Chair Gary Gensler. was considered a low point.
Almost half of Robinhood’s $672 million transaction-based revenue in the fourth quarter was linked to crypto transactions as Bitcoin was raised towards $100,000 for the first time in hopes of a more favorable policy under Trump. It was from a 700% increase in revenue.
Robinhood shares have so far won 38% in 2025.
