SEC Ends Robinhood Investigation &#039, With No Action&#039,

The U.S. Securities and Exchange Commission has closed its research into Robinhood Crypto, according to a declaration from the company.

After sending the business a Wells Notice in May 2024 notifying it of a pending police action, the SEC’s Enforcement Division informed Robinhood Crypto that “it had concluded its research and did not intend to proceed with an police action.”

The controller won’t comment on the situation, according to an SEC spokesman.

In a statement, Robinhood Markets ‘ head of constitutional and adherence, Dan Gallagher, said that” this research should never have been opened”, arguing that the company “never allowed deals in securities”.

” Instead of regulation by enforcement, it’s time for the SEC to turn to rules by regulation—providing market participants with precision and an ideal regulatory framework for modern property”, Robinhood added in its statement.

Gallagher was once referred to as a possible substitute for Gary Gensler, the former SEC chair. But he made it very clear that it was a nonstarter.

” It is always an honor to have your brand in the mix for an extremely important work like SEC Chairman”, Gallagher told&nbsp, Decrypt&nbsp, in a statement. ” But, I have made it evident that I do not wish to be considered for this position”.

The SEC’s Robinhood investigation’s conclusion is consistent with what the market has seen in a number of similar circumstances recently. The regulator closed its investigation into NFT platform OpenSea past Friday, just hours after reaching a definitive agreement to fall charges against crypto change Ethereum.

The SEC has changed its stance toward crypto since Donald Trump’s election, forming a new task force under crypto-friendly commissioner Hester Peirce, and rescinding its Staff Accounting Bulletin ( SAB) No. 121, which crypto programs were criticized for having too much difficulty.

The called off research aligns with promises the leader made during his plan to create a more positive approach to crypto oversight than the previous president’s “regulation-by-enforcement” strategy under previous SEC Chair Gary Gensler.

Shares in Robinhood saw a small bump in intraday buying, up 2.4 % per Yahoo Finance, after having closed Friday down 7.9 % from available.

Crypto has become increasingly important to Robinhood’s business model, with almost half of its$ 672 million transaction-based revenue in the fourth quarter coming from crypto trading —a 700 % increase as Bitcoin rallied beyond$ 100, 000 in step with Trump’s electoral victory.