Robinhood says SEC dismissed crypto unit investigation in newest signal of simpler regulation for trade

The Securities and Alternate Fee is dropping its investigation into Robinhood’s crypto arm, the corporate revealed Monday.

Robinhood mentioned it acquired a letter from the SEC’s Enforcement Division Friday, detailing in a weblog submit that the company has closed its investigation into the crypto enterprise with no intention of transferring ahead with an enforcement motion. The information comes three days after Coinbase equally introduced that the SEC has agreed to finish its enforcement case in opposition to it.

Shares have been up greater than 1% in premarket buying and selling, off their highs of the morning.

In Could 2024, Robinhood acquired a discover warning that it might be charged for potential violation of securities legislation inside its crypto unit after beforehand being subpoenaed for its cryptocurrency listings, custody and platform operations – regardless of “years of fine religion makes an attempt to work with the SEC for regulatory readability together with our well-known try to ‘are available in and register,'” Dan Gallagher, the corporate’s chief authorized, compliance and company affairs officer, mentioned on the time.

“Robinhood Crypto all the time has and can all the time respect federal securities legal guidelines and by no means allowed transactions in securities,” he mentioned in a press release Monday. “We admire the formal closing of this investigation, and we’re glad to see a return to the rule of legislation and dedication to equity on the SEC.”

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

The SEC’s dismissal of the Robinhood and Coinbase instances is an early signal of the regulatory sea change for the crypto trade promised by President Donald Trump throughout his election marketing campaign. Regardless of the meteoric rise of the value of bitcoin below the earlier administration, many crypto companies noticed it as low level as a result of SEC’s infamous regulation-by-enforcement method to crypto – versus the creation of clear guidelines by which to function – below the management of then chair Gary Gensler.

Almost half of Robinhood’s $672 million transaction-based income within the fourth quarter got here from a 700% rise in income tied to crypto buying and selling, as bitcoin rallied towards $100,000 for the primary time ever on hopes of extra favorable insurance policies below Trump.

Shares have gained 38% thus far in 2025.