Robinhood says SEC brushed aside crypto unit investigation in untouched signal of more uncomplicated law for trade

The Securities and Trade Fee is shedding its investigation into Robinhood’s crypto arm, the corporate detectable Monday.

Robinhood mentioned it won a letter from the SEC’s Enforcement Category Friday, detailing in a blog post that the company has closed its investigation into the crypto industry and not using a aim of transferring ahead with an enforcement motion. The scoop comes 3 days upcoming Coinbase in a similar way introduced that the SEC has yes to finish its enforcement case towards it.

Stocks rose greater than 3% in premarket buying and selling.

In Would possibly 2024, Robinhood won a understand threat that it may well be charged for doable violation of securities regulation inside of its crypto unit upcoming up to now being subpoenaed for its cryptocurrency listings, custody and platform operations – regardless of “years of good faith attempts to work with the SEC for regulatory clarity including our well-known attempt to ‘come in and register,'” Dan Gallagher, the corporate’s leading prison, compliance and company affairs officer, mentioned on the presen.

“Robinhood Crypto always has and will always respect federal securities laws and never allowed transactions in securities,” he mentioned in a remark Monday. “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.”

The SEC didn’t reply to a request for remark.

The SEC’s dismissal of the Robinhood and Coinbase circumstances is an early signal of the regulatory sea trade for the crypto trade promised by means of President Donald Trump throughout his election marketing campaign. Regardless of the meteoric arise of the cost of bitcoin underneath the former management, many crypto companies noticed it as low level because of the SEC’s infamous regulation-by-enforcement option to crypto – versus the settingup of sunlit regulations in which to perform – underneath the management of nearest chair Gary Gensler.

Just about part of Robinhood’s $672 million transaction-based earnings within the fourth quarter got here from a 700% arise in earnings attach to crypto buying and selling, as bitcoin rallied towards $100,000 for the primary presen ever on hopes of extra favorable insurance policies underneath Trump.

Stocks have received 38% up to now in 2025.