The United States Securities and Exchange Commission (SEC) has chosen to dismiss its investigation of Robinhood Crypto
According to the Robinhood blog post, the firm received a letter from the SEC on Feb 21, stating that it had concluded its investigation and would not take any action. This comes after a Wells Notice from the SEC to Robinhood in May 2024.Â
A Wells Notice usually means the SEC is considering bringing charges against a company, but this time, no charges were filed.
Robinhood’s Chief Legal Officer, Dan Gallagher, spoke about the ruling. He said, “We applaud the staff’s decision to close this investigation with no action.”
He stated that there should never have been an investigation, as Robinhood Crypto has always followed federal securities laws. He further pointed out that Robinhood did not allow any tradings in securities on its platform.
Robinhood is one of many firms that disagreed with the stance most digital assets can be treated as securities, still, the company decided to avoid offering services that other companies might have offered.
Gallagher said any such enforcement action brought against Robinhood Crypto would have failed and thanked the SEC for officially closing the matter. He further said that Robinhood would keep following the rules and help bring about a better and clearer set of rules for digital assets.
Meanwhile, the crypto space has been seeing changes in the way regulators approach digital assets. Under President Donald Trump’s administration, the SEC has been reviewing its cryptocurrency regulations.
The SEC recently formed a dedicated unit to give clearer guidelines on crypto. It has also taken steps to loosen tight regulations, like overturning some accounting rules.
The space sees this change as a good sign, especially since Paul Atkins, Trump’s pick for SEC chair, will more likely push a more friendly stance towards crypto. Robinhood’s stock climbed 3.3% in premarket trading after finding out that the investigation was dropped.
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