The Robinhood brand is seen displayed on a smartphone display screen towards a pc display screen 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 on Friday, detailing in a weblog publish 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.
Shares of Robinhood initially rose on the information however have been final decrease by about 3% amid a broader pullback in shares from the day’s highs.
Shares of Robinhood initially rose on the information however pulled again with the broader market.
In Could 2024, Robinhood acquired a discover warning that it might be charged for potential violation of securities legislation inside its crypto unit after beforehand being subpoenaed for its cryptocurrency listings, custody and platform operations – regardless of “years of fine religion makes an attempt to work with the SEC for regulatory readability together with our well-known try to ‘are available in and register,'” Dan Gallagher, the corporate’s chief authorized, compliance and company affairs officer, stated on the time.
“Robinhood Crypto all the time has and can all the time respect federal securities legal guidelines and by no means allowed transactions in securities,” he stated in a press release Monday. “We recognize the formal closing of this investigation, and we’re pleased to see a return to the rule of legislation and dedication to equity on the SEC.”
An SEC spokesperson declined to remark for this story.
The SEC’s dismissal of the Robinhood and Coinbase instances is an early signal of the regulatory sea change for the crypto business promised by President Donald Trump throughout his election marketing campaign. Regardless of the meteoric rise of the value of bitcoin underneath the earlier administration, many crypto companies noticed it as low level as a result of SEC’s infamous regulation-by-enforcement method to crypto – versus the creation of clear guidelines by which to function – underneath the management of then Chair Gary Gensler.
Practically 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 rallied towards $100,000 for the primary time ever on hopes of extra favorable insurance policies underneath Trump.
Robinhood shares have gained 38% thus far in 2025.
