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The Securities and Exchange Commission (SEC) has decided to terminate its investigation into Robinhood’s cryptocurrency division, as revealed by the company on Monday. This announcement followed a communication from the SEC’s enforcement division, indicating that no further enforcement action would be pursued against Robinhood.
This development comes shortly after Coinbase shared news of a similar conclusion, where the SEC also ceased its enforcement actions against the cryptocurrency platform. Following the announcement from Robinhood, the company’s shares saw an initial increase, although they later experienced a decline of about 2% as part of a broader market pullback.
In May 2024, Robinhood was warned that it might face charges related to potential securities law violations within its crypto unit. This followed a subpoena concerning their cryptocurrency listings, custody practices, and platform operations. Dan Gallagher, Robinhood’s chief legal officer, noted the company’s ongoing efforts to collaborate with the SEC for regulatory clarity, highlighting their proactive attempts to register their services.
“Robinhood Crypto has consistently complied with federal securities laws and has not facilitated transactions in securities,” Gallagher stated. He expressed appreciation for the SEC’s decision to formally close the investigation and emphasized the importance of returning to a framework of law and fairness within the regulatory environment.
An SEC spokesperson chose not to provide comments regarding the situation.
The SEC’s closure of the Robinhood and Coinbase investigations signals a potential shift in the regulatory landscape for the cryptocurrency sector, a change that had been anticipated by President Donald Trump during his election campaign. Despite the significant surge in Bitcoin’s price during the last administration, many cryptocurrency firms struggled due to the SEC’s stringent regulatory approach, which often relied on enforcement actions rather than establishing clear operational guidelines.
In the fourth quarter, nearly half of Robinhood’s $672 million in transaction-based revenue was attributed to a phenomenal 700% increase in crypto trading revenue, particularly as Bitcoin approached the $100,000 mark, buoyed by expectations of more favorable regulatory policies under Trump’s administration.
Since the beginning of 2025, Robinhood’s shares have seen a notable increase of 38%.
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