The SEC has officially closed its investigation into Robinhood’s crypto division without pursuing enforcement action, marking a significant regulatory shift. This decision follows the agency’s recent dismissal of its case against Coinbase, suggesting a retreat from its previously aggressive stance on crypto enforcement.
Robinhood had been under scrutiny since May 2024 over potential securities law violations but consistently maintained compliance with federal regulations. The news boosted investor confidence, with Robinhood’s stock rising over 3% in pre-market trading.
With crypto becoming a major revenue driver—contributing over half of Robinhood’s $672 million in Q4 2024 transaction-based earnings—the regulatory relief could strengthen its market position. Chief Legal Officer Dan Gallagher welcomed the decision, reinforcing the company’s commitment to compliance.
“The SEC closing its investigation into Robinhood Crypto is a win for justice and the rule of law. Now, it’s time to focus on pro-innovation policies that unlock the full potential of digital assets in America,” Gallagher said on the X social media network.
The SEC is anticipated to scale back its crackdown on non-fraud cryptocurrency cases following significant changes within its enforcement division, including the downsizing of its crypto enforcement unit and the demotion of chief litigator Jorge Tenreiro.
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