The U.S. Securities and Exchange Commission (SEC) has concluded its investigation into Robinhood Crypto without pursuing any enforcement measures, the company confirmed in a recent statement. Robinhood Crypto, a subsidiary of Robinhood Markets, disclosed that the agency’s Enforcement Division had informed the company that the probe had ended, and no further action would be taken.
Recent Update On Robinhood SEC Case
The latest development follows a Wells Notice the agency issued to Robinhood Crypto in May 2024, signaling a potential enforcement action. Dan Gallagher, Robinhood Markets’ Chief Legal and Compliance Officer, criticized the investigation, stating that it should never have been initiated.
According to Gallagher, Robinhood Crypto has never facilitated transactions involving securities, which he believes should have prevented any regulatory scrutiny from the start. Gallagher, a former SEC commissioner, was briefly considered as a possible successor to SEC Chair Gary Gensler.
However, he dismissed the speculation, making it clear he was not interested in taking the position. “It is always an honor to have your name in the mix for an incredibly important job like SEC Chairman,” Gallagher said, as per a report by Decrypt. “However, I have made it clear that I do not wish to be considered for this position.”
The regulatory agency’s decision to drop the case against Robinhood Crypto is part of a broader pattern of recent regulatory actions in the crypto industry. Just days before this announcement, the agency also ended its probe into NFT marketplace OpenSea. Additionally, the agency recently reached an agreement in principle to dismiss charges against crypto exchange Coinbase.
SEC’s Pro-Crypto Shift & HOOD Stock Movement
Regulatory shifts have been noticeable since the start of Donald Trump’s presidency, with changes in policy affecting crypto oversight. Under Commissioner Hester Peirce, the American watchdog launched a new task force focused on digital assets. The agency also withdrew its controversial Staff Accounting Bulletin (SAB) No. 121, which critics claimed placed excessive regulatory burdens on crypto platforms.
Robinhood’s HOOD stock price responded positively to the news, with shares rising 2.4% in premarket trading, according to data from Yahoo Finance. This followed a 7.9% drop in the company’s stock during Friday’s session.
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