The United States Securities and Exchange Commission (SEC) has dropped its investigation into Robinhood’s cryptocurrency division, the company announced on Monday.
The decision signals a shift in regulatory stance following years of scrutiny on the crypto sector.
Robinhood revealed it received a letter from the SEC’s enforcement division on Friday, confirming the closure of the probe without any enforcement action. The announcement comes just days after Coinbase disclosed that the SEC had also ended its enforcement case against the exchange.
The SEC’s inquiry into Robinhood’s crypto unit dates back to May 2024, when the company received a warning that it could face charges for potential violations of securities laws.
The probe focused on Robinhood’s cryptocurrency listings, custody, and platform operations.
Dan Gallagher, Robinhood’s chief legal, compliance, and corporate affairs officer noted in the statement:
“Let me be crystal clear - this investigation never should have been opened. Robinhood Crypto always has and will always respect federal securities laws and never allowed transactions in securities.
"As we explained to the SEC, any case against Robinhood Crypto would have failed. We appreciate the formal closing of this investigation, and we are happy to see a return to the rule of law and commitment to fairness at the SEC.”
The dismissal of cases against both Robinhood and Coinbase indicates an early shift in regulatory policy under President Donald Trump, who has promised a more business-friendly approach to cryptocurrency.
During the previous administration, the SEC, under then-Chair Gary Gensler, adopted a strict "regulation-by-enforcement" approach, leading to legal battles with multiple crypto firms.
Earlier in the month, Robinhood’s crypto trading revenue surged 115% in Q4 to a record $1.01 billion, while net deposits also lifted to a record $16 billion.
At the time of writing, Robinhood (NASDAQ: HOOD) stock was trading at US$49.54, easing 0.8% from Monday's close of $49.93. The stock reached a day low of $47.97 and a day high of $52.56. Robinhood's market cap stands at US$44.31 billion.
