Regulatory Probe of Robinhood’s Cryptocurrency Unit Ends Without Incident

The Securities and Exchange Commission (SEC) has concluded its investigation into Robinhood’s cryptocurrency unit without taking any enforcement action, the financial services platform announced in a press release on Monday. The SEC had issued a Wells notice last year, typically seen as a warning of pending enforcement action, but ultimately decided not to pursue any further action.

Robinhood’s Chief Legal Officer, Dan Gallagher, expressed relief at the SEC’s decision, stating that the investigation should never have been opened in the first place. He emphasized that Robinhood Crypto has always complied with federal securities laws and never allowed transactions in securities.

This news comes on the heels of another crypto firm, Coinbase, announcing that the SEC is set to dismiss its lawsuit against the company. Coinbase CEO Brian Armstrong confirmed that the dismissal would come with no fines paid and no changes to their business operations.

The SEC’s actions against crypto companies have been part of an ongoing crackdown under the Biden administration. However, with the changing attitudes towards crypto, evidenced by the recent restructuring of the SEC’s units, it seems that the regulatory landscape may be evolving.

While Robinhood was penalized by the SEC in January for failing to adhere to regulatory requirements, the recent conclusion of the investigation into its cryptocurrency unit marks a positive development for the platform. The SEC’s decision not to pursue enforcement action is a welcome relief for Robinhood and its users.