Robinhood has announced that the Securities and Exchange Commission (SEC) is ending its investigation into the trading app’s cryptocurrency division.
This development follows news that the SEC has also decided to drop its case against Coinbase, signifying a shift in its relationship with the crypto industry under the new administration of President Donald Trump.
In May, Robinhood revealed that it had received a Wells notice from the SEC, signaling that the regulatory body was preparing to take enforcement action. The SEC had previously issued subpoenas concerning the company’s cryptocurrency listings, custody, and platform operations.
With the change in leadership at the SEC, regulators are reevaluating their stance on the crypto industry and the classification of tokens as securities.
According to a blog post from Robinhood, the SEC has informed the company that it has “concluded its investigation and did not intend to move forward with an enforcement action.”
Dan Gallagher, Chief Legal, Compliance, and Corporate Affairs Officer at Robinhood Markets, commented: “Let me be crystal clear—this investigation never should have been opened. Robinhood Crypto has always respected federal securities laws and never facilitated transactions in securities.
“As we explained to the SEC, any case against Robinhood Crypto would have failed. We appreciate the formal closure of this investigation and are pleased to see a return to the rule of law and commitment to fairness at the SEC.”