Summary: Robinhood Crypto is in the clear. Nearly a year after being in the limelight, the SEC has officially shut down its investigation without imposing any enforcement action. The action comes months after Robinhood had received a Wells Notice, typically a move towards enforcement But not in this case, as no enforcement action was filed.
Robinhood Crypto has finally seen some much-needed relief only in recent times. In February this year, the company issued a letter from the SEC stating that the investigation into its crypto business was finally laid to rest with no enforcement.
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This puts an end to a battle that ran for nearly a year, starting in May this year, when the SEC sent Robinhood a Wells Notice. That’s usually an indication that regulators are preparing to file charges, but the SEC stood down and took no action.
Robinhood Head of Legal Dan Gallagher commented on the decision, saying, “We applaud the staff’s decision to close out this investigation without action.” He explained that Robinhood had been compliant with the securities laws all along and that the probe shouldn’t have been conducted in the first place. Unlike other platforms, Robinhood never listed tokens that could potentially be considered securities.
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For their part, regulatory attitudes towards crypto appear to shift. Under President Donald Trump’s administration, the SEC reviewed its digital assets policy. It has just established a new division in charge of providing clearer guidance and easing some erstwhile restrictive rules.
With the agency led by ex-SEC Commissioner Paul Atkins, the majority expect a more crypto-friendly approach. Investors were upbeat on the news Robinhood’s shares jumped 3.3% in premarket trading after the announcement.