The Securities and Exchange Commission (SEC) has decided to drop its investigation into Robinhood, signaling a shift in the agency’s stance toward cryptocurrency companies. This decision follows the SEC’s recent actions against notable crypto firms, marking a potentially friendlier approach to the cryptocurrency industry under the Trump administration.
SEC Ends Probe Into Robinhood Crypto Operations
On Monday, Robinhood announced that the SEC would not proceed with enforcement action regarding its crypto listings and sales. The decision comes after Robinhood received a Wells Notice from the SEC in May 2022, suggesting potential violations of securities laws. The investigation had been focused on Robinhood’s crypto operations, which included its platform’s handling of digital assets.
In response to the closure of the investigation, Dan Gallagher, Robinhood’s chief legal officer, expressed gratitude, stating, “Robinhood Crypto always has and will always respect federal securities laws and never allowed transactions in securities.” He further emphasized that any legal case against the company would have been unsuccessful. Gallagher also welcomed the conclusion of the investigation, highlighting a return to the rule of law and fairness at the SEC.
A New Era for Crypto Regulation?
The SEC’s decision not to take action against Robinhood could signal a shift in regulatory policy under the Trump administration. While the Biden administration had pushed for a more stringent approach to crypto regulation, including considering cryptocurrencies as securities, this recent change could indicate a move toward a less restrictive stance.
Robinhood, which launched its crypto wallet in 2022, has faced regulatory challenges in the past. In 2022, the company was fined $30 million by New York officials, and in 2024, it reached a $3.9 million settlement with California over crypto withdrawal issues. Despite these challenges, the company remains optimistic about working with the SEC to establish clearer, more tailored regulations for digital assets.
A Sign of Industry Confidence
This development comes on the heels of another significant shift in SEC actions. Last week, the SEC dropped its case against Coinbase, a leading cryptocurrency exchange, which had been accused of running an unregistered securities exchange. These recent moves suggest a potential thaw in the regulatory environment for the crypto industry.
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