Robinhood says the SEC has ended the regulator’s probe into Robinhood Crypto.
SEC issued a Wells Discover to Robinhood Crypto in Might 2024.
SEC’s closing of the Robinhood Crypto investigation comes days after the company closed an identical probe towards Opensea.
The US Securities and Change Fee has dropped its investigation into Robinhood’s digital belongings arm.
Robinhood introduced through weblog publish on Monday, Feb. 24 that the SEC has closed its enforcement motion probe towards the corporate.
“We applaud the workers’s determination to shut this investigation with no motion,” mentioned Dan Gallagher, chief authorized officer of Robinhood Markets.
The SEC’s determination to finish its investigation into Robinhood comes simply days after one other platform, Opensea, mentioned the regulator was ending its probe.
Each Robinhood and Opensea acquired ‘Wells Notices’ from the SEC in 2024.
Final week, crypto alternate Coinbase additionally introduced the regulator had agreed to dismiss the lawsuit it had filed towards the US-based firm in 2023.
SEC closes Robinhood probe
Within the weblog publish on Monday, Robinhood mentioned it acquired communication from the SEC’s Enforcement Division on Friday, Feb. 21.
The letter detailed the company’s determination to finish the investigation into Robinhood Crypto, with no additional motion. SEC’s Wells Discover alleged potential securities legal guidelines violations by the buying and selling platform.
Nonetheless, Robinhood maintained it had not violated any securities legal guidelines and didn’t supply securities to customers.
“This investigation by no means ought to have been opened,” Gallagher added. “Robinhood Crypto all the time has and can all the time respect federal securities legal guidelines and by no means allowed transactions in securities. As we defined to the SEC, any case towards Robinhood Crypto would have failed. We admire the formal closing of this investigation, and we’re pleased to see a return to the rule of legislation and dedication to equity on the SEC.”
The SEChas taken a extra pro-crypto innovation stance for the reason that exit of former chair Gary Gensler. President Donald Trump’s appointment of pro-crypto people into positions on the company has helped this shift, together with the institution of a crypto job pressure by performing chair Mark Uyeda.
