The Securities and Exchange Commission is dropping its investigation into Robinhood\u2019s crypto arm, the company revealed Monday.<\/p>\n
Robinhood said it received a letter from the SEC\u2019s enforcement division on Friday, detailing in a blog post that the agency has closed its investigation into the crypto business with no intention of moving forward with an enforcement action. The news comes three days after Coinbase similarly announced that the SEC has agreed to end its enforcement case against it.<\/p>\n
Shares of Robinhood were last higher by about 1%.<\/p>\n
In May 2024, Robinhood received a notice warning that it could be charged for potential violation of securities law within its crypto unit after previously being subpoenaed for its cryptocurrency listings, custody and platform operations \u2014 despite \u201cyears of good faith attempts to work with the SEC for regulatory clarity including our well-known attempt to \u2018come in and register,\u2019\u201d Dan Gallagher, the company\u2019s chief legal, compliance and corporate affairs officer, said at the time.<\/p>\n
\u201cRobinhood Crypto always has and will always respect federal securities laws and never allowed transactions in securities,\u201d he said in a statement Monday. \u201cWe 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.\u201d<\/p>\n
An SEC spokesperson declined to comment for this story.<\/p>\n
The SEC\u2019s dismissal of the Robinhood and Coinbase cases is an early sign of the regulatory sea change for the crypto industry promised by President Donald Trump during his election campaign. Despite the meteoric rise of the price of bitcoin under the previous administration, many crypto businesses saw it as low point due to the SEC\u2019s notorious regulation-by-enforcement approach to crypto \u2014 as opposed to the creation of clear rules by which to operate \u2014 under the leadership of then Chair Gary Gensler.<\/p>\n
Nearly half of Robinhood\u2019s $672 million transaction-based revenue in the fourth quarter came from a 700% rise in revenue tied to crypto trading, as bitcoin rallied toward $100,000 for the first time ever on hopes of more favorable policies under Trump.<\/p>\n
The shares have gained 38% so far in 2025.<\/p>\n<\/p>\n
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