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2mo ago

SEC Ends Robinhood Crypto Investigation Without Enforcement Action

The regulatory shift under the Trump administration signals a more lenient approach to cryptocurrency oversight.

The logo of Robinhood Markets, Inc. is seen at a pop-up event on Wall Street after the company's IPO in New York City, U.S., July 29, 2021.
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FILE - Electronic screens in New York's Times Square announce the Robinhood IPO, July 29, 2021. (AP Photo/Mark Lennihan, File)
Coinbase Global watch as their listing is displayed on the Nasdaq MarketSite at Times Square in New York on April 14, 2021.

Overview

  • Robinhood announced the SEC has closed its investigation into its crypto unit without pursuing enforcement action, following a Wells Notice issued in May 2024.
  • The decision reflects a broader regulatory shift under President Trump's administration, which has adopted a more crypto-friendly stance and eased enforcement efforts.
  • The SEC has also recently dropped cases against Coinbase and OpenSea, signaling a move away from the previous administration's aggressive 'regulation by enforcement' strategy.
  • Robinhood's legal team emphasized that the company has always complied with federal securities laws and argued the investigation was unwarranted.
  • Robinhood's stock saw mixed reactions, with shares initially rising but later declining, as the company continues to benefit from increased crypto trading activity.