## SEC Closes Investigation into Robinhood Crypto
The United States Securities and Exchange Commission (SEC) has officially concluded its investigation into Robinhood Crypto, the cryptocurrency division of the well-known financial services firm. This decision comes less than a year after the SEC issued a Wells notice to the company, indicating potential enforcement action was on the horizon.
## SEC Does Not Plan to Pursue Enforcement Action Against Robinhood
In a recent statement, Robinhood announced that the SEC’s Enforcement Division informed them that it had wrapped up its investigation and would not be moving forward with any enforcement actions. Dan Gallagher, Robinhood Markets’ head of compliance and corporate affairs, expressed his belief that “this investigation should never have been opened,” emphasizing that the company has always adhered to federal securities laws and has not engaged in transactions involving securities.
On May 4, 2024, the SEC had issued a Wells notice to Robinhood Crypto, suggesting that it would recommend pursuing enforcement action based on a “preliminary determination” regarding alleged securities violations. Gallagher stated, “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.”
Earlier this year, Robinhood settled with the SEC for $45 million over claims that it violated more than ten securities laws, during which the company “admitted to certain findings” presented by the regulator.
## A Turning Point for US Crypto Regulation
The administration of President Donald Trump has initiated significant policy changes affecting the cryptocurrency market. Shortly after taking office on January 20, the SEC rescinded previous accounting guidance and established a crypto task force aimed at developing a new regulatory framework. Furthermore, on January 23, 2025, President Trump signed an executive order designed to provide regulatory clarity for digital assets and strengthen the United States’ position as a leader in the global digital asset economy.
The conclusion of the SEC’s investigation into Robinhood reflects a broader trend in the industry, as seen in several recent cases. Just last Friday, the SEC wrapped up its investigation into the NFT marketplace OpenSea, shortly after agreeing to dismiss charges against the crypto exchange Coinbase. This marked a significant legal victory for Coinbase and a pivotal moment for US crypto regulation.
According to former SEC official John Reed Stark, the SEC’s long-standing lawsuit against Ripple is also effectively stalled, indicating a shift in the regulatory landscape for cryptocurrencies.
