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Robinhood has announced that the U.S. Securities and Exchange Commission (SEC) has officially closed its investigation into the company’s cryptocurrency division without pursuing enforcement action.
This development follows reports that the SEC is also dropping its case against Coinbase as it redefines its regulatory stance on the crypto industry amid a shift in leadership under the Trump administration.
Robinhood had previously disclosed in May that it received a Wells notice from the SEC, signaling potential enforcement action. The regulator had been investigating the company’s cryptocurrency operations, including its token listings, custody services, and platform structure.
However, with changes in the SEC’s leadership, there has been a reassessment of regulatory policies, particularly concerning the classification of digital assets as securities.
In a recent blog post, Robinhood confirmed that the SEC has formally ended its probe.
“The SEC has concluded its investigation and does not intend to move forward with enforcement action,” the company stated.
Dan Gallagher, Robinhood Markets’ Chief Legal, Compliance, and Corporate Affairs Officer, criticized the initial probe, asserting that it lacked merit.
“Let me be crystal clear—this investigation never should have been opened. Robinhood Crypto has always respected federal securities laws and never facilitated transactions involving securities,” Gallagher said.
He further emphasized that any legal action against Robinhood Crypto would not have held up in court.
“We appreciate the SEC’s decision to formally close this case and welcome a return to the rule of law and fair regulatory oversight,” Gallagher added.
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