Recently, Robinhood platform announced Monday that the SEC is dropping its investigation into its crypto arm. The company shared in a detailed blog post that it received a letter from the SEC’s Enforcement Division on Friday, confirming the case is closed with no further action planned.
Notably, this move follows Coinbase’s announcement just days earlier that the SEC is ending its enforcement case against them. Following the news, Robinhood’s shares jumped over 3% in premarket trading.
“We applaud the staff’s decision to close this investigation with no action,” said Dan Gallagher, Chief Legal, Compliance and Corporate Affairs Officer, Robinhood Markets, Inc. “Let me be crystal clear—this investigation never should have been opened,” he remarked.
Robinhood Crypto emphasizes that it has always followed federal securities laws and never allowed transactions in securities. The company stated that, based on their explanation to the SEC, any potential case against Robinhood Crypto would not have been successful. “We appreciate the formal closing of this investigation, and we are happy to see a return to the rule of law and commitment to fairness at the SEC,” he added.
The SEC’s decision to drop the cases against Robinhood and Coinbase signals a potential shift in crypto regulation, something President Donald Trump promised during his campaign. While Bitcoin soared in value under the previous administration, many crypto businesses struggled due to the SEC’s tough, enforcement-based approach under former chair Gary Gensler, instead of clear and fair rules for the industry.
