Robinhood says SEC dismissed crypto unit investigation in latest sign of easier regulation for industry
The Securities and Exchange Commission is dropping its investigation into Robinhood's crypto arm, the company said Monday.
The Securities and Exchange Commission is dropping its investigation into Robinhood's crypto arm, the company revealed Monday.
Robinhood said it received a letter from the SEC's Enforcement Division 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.
Shares rose more than 2.5% in premarket trading.
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 – despite "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 company's chief legal, compliance and corporate affairs officer, said at the time.
"Robinhood Crypto always has and will always respect federal securities laws and never allowed transactions in securities," he said in a statement 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."