Lately, Robinhood platform introduced Monday that the SEC is dropping its investigation into its crypto arm. The corporate shared in an in depth blog post that it acquired a letter from the SEC’s Enforcement Division on Friday, confirming the case is closed with no additional motion deliberate.
Notably, this transfer follows Coinbase’s announcement simply days earlier that the SEC is ending its enforcement case towards them. Following the information, Robinhood’s shares jumped over 3% in premarket buying and selling.
“We applaud the employees’s choice to shut this investigation with no motion,” mentioned Dan Gallagher, Chief Authorized, Compliance and Company Affairs Officer, Robinhood Markets, Inc. “Let me be crystal clear—this investigation by no means ought to have been opened,” he remarked.
Robinhood Crypto emphasizes that it has all the time adopted federal securities legal guidelines and by no means allowed transactions in securities. The corporate said that, primarily based on their rationalization to the SEC, any potential case towards Robinhood Crypto wouldn’t have been profitable. “We respect the formal closing of this investigation, and we’re completely happy to see a return to the rule of regulation and dedication to equity on the SEC,” he added.
The SEC’s choice to drop the instances towards Robinhood and Coinbase alerts a possible shift in crypto regulation, one thing President Donald Trump promised throughout his marketing campaign. Whereas Bitcoin soared in worth underneath the earlier administration, many crypto companies struggled because of the SEC’s powerful, enforcement-based method underneath former chair Gary Gensler, as a substitute of clear and truthful guidelines for the trade.