US SEC Ends Investigation Into Robinhood Crypto With No Enforcement Action

The U.S. Securities and Exchange Commission (SEC) has officially concluded its investigation into Robinhood Crypto (RHC). According to a press release issued today by Robinhood, the SEC’s Enforcement Division informed RHC in a letter on February 21, 2025, that no enforcement action would follow. This development comes after the SEC issued a Wells Notice to Robinhood in May 2024. At the time, the move signaled a potential violation of securities laws related to its crypto operations. As a result, the SEC investigated Robinhood’s cryptocurrency platform to assess its compliance with federal securities laws. Despite these regulatory inquiries, Robinhood maintained that it had consistently sought clarity from the SEC. Meanwhile, the company’s legal team argued that its attempts to work with the regulator were ignored. The SEC Investigation Was Unnecessary, Says Robinhood’s Legal Chief In the statement, Robinhood's Chief Legal Officer, Dan Gallagher, acknowledged the SEC’s decision. He reiterated the company's stance that the investigation should not have been initiated. The company asserted that its crypto operations complied with federal securities laws and that its trading platform did not facilitate transactions in securities. RHC emphasized that any potential case against it would not have succeeded based on legal grounds. The company further argued that it had intentionally avoided offering certain products and services that the SEC, under its previous leadership, had classified as securities. Unlike other platforms that faced legal action, RHC made strategic decisions to comply with the regulator’s interpretations. Following the case closure, Robinhood reaffirmed its commitment to working with the SEC under its new leadership to establish clearer regulations for digital assets. SEC Drops Case Against Coinbase Meanwhile, the SEC also dropped its enforcement case against Coinbase last week. The decision came after charges were filed in 2023 under former Chair Gary Gensler. The SEC had accused the leading U.S. exchange of operating an unregistered securities platform and offering a crypto-staking program without proper registration. However, under the new SEC leadership, the case has now been closed . Coinbase’s CEO stated that the dismissal of the case marked a significant moment for both the company and the broader crypto industry.