The U.S. Securities and Alternate Fee (SEC) has formally concluded its investigation into Robinhood Crypto (RHC).
In keeping with a press release issued in the present day by Robinhood, the SEC’s Enforcement Division knowledgeable RHC in a letter on February 21, 2025, that no enforcement motion would comply with.
This improvement comes after the SEC issued a Wells Discover to Robinhood in Could 2024. On the time, the transfer signaled a possible violation of securities legal guidelines associated to its crypto operations.
In consequence, the SEC investigated Robinhood’s cryptocurrency platform to evaluate its compliance with federal securities legal guidelines.
Regardless of these regulatory inquiries, Robinhood maintained that it had persistently sought readability from the SEC. In the meantime, the corporate’s authorized staff argued that its makes an attempt to work with the regulator have been ignored.
The SEC Investigation Was Pointless, Says Robinhood’s Authorized Chief
Within the assertion, Robinhood’s Chief Authorized Officer, Dan Gallagher, acknowledged the SEC’s resolution. He reiterated the corporate’s stance that the investigation mustn’t have been initiated.
The corporate asserted that its crypto operations complied with federal securities legal guidelines and that its buying and selling platform didn’t facilitate transactions in securities. RHC emphasised that any potential case towards it might not have succeeded based mostly on authorized grounds.
The corporate additional argued that it had deliberately averted providing sure services and products that the SEC, below its earlier management, had categorized as securities.
Not like different platforms that confronted authorized motion, RHC made strategic choices to adjust to the regulator’s interpretations. Following the case closure, Robinhood reaffirmed its dedication to working with the SEC below its new management to determine clearer laws for digital property.
SEC Drops Case Towards Coinbase
In the meantime, the SEC additionally dropped its enforcement case towards Coinbase final week. The choice got here after expenses have been filed in 2023 below former Chair Gary Gensler.
The SEC had accused the main U.S. change of working an unregistered securities platform and providing a crypto-staking program with out correct registration.
Nonetheless, below the brand new SEC management, the case has now been closed. Coinbase’s CEO acknowledged that the dismissal of the case marked a major second for each the corporate and the broader crypto trade.
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