Robinhood Announced That The US SEC Is Dropping Its Investigation Of The Firm’s Crypto Arm
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Robinhood announced recently that the US Securities and Exchange Commission is ditching its investigation into the company’s crypto arm.
The announcement came only a few days after reports that the SEC has also decided to give up on its case against Coinbase, the largest US crypto exchange. Now, the regulator is seemingly looking to reset its relationship with the crypto sector under the new administration, following Trump’s return to the White House.
Previously, the SEC doubled down on financial firms tied to the crypto industry, with Robinhood itself reporting that it received a Wells notice back in May 2024. This was an indication that the securities regulator intended to take enforcement action, which Robinhood decided to fight against.
The SEC made other moves to discourage Robinhood’s interactions with the crypto sector, such as issuing subpoenas related to the firm’s crypto listings, custody, and platform operations. However, things have started to change with Trump’s return as the head of the country, and Gary Gensler’s departure from the SEC.
Regulators Are Changing Their Approach To Crypto Under Trump
Under the new, crypto-friendly administration, regulators in the US are reassessing their approach to the digital currency sector, especially when it comes to token classification. Until now, the SEC claimed that all cryptos are securities, with a few exceptions such as Bitcoin and Ethereum. Now, however, more cryptos might be considered exempt from this classification.
As for Robinhood, it said that it received a statement from the regulator, which announced the conclusion of the investigation. The SEC also said that it does not intend to move forward with the previously announced enforcement action.
Robinhood Markets’ chief legal, compliance, and corporate affairs officer, Dan Gallagher, stated that the investigation never should have been opened in the first place. He claims that Robinhood Crypto always has and will always respect federal securities laws, and that it never allowed transactions in securities.
He also highlighted that Robinhood attempted to explain to the regulator that its case against Robinhood Crypto would fail. While the SEC initially tried to go through with it anyway, the trading firm appreciates that the investigation has now been formally closed, and is happy to see a return to the rule of law and commitment to fairness at the SEC.
