SEC Ends Investigation Into Robinhood Crypto With No Action Taken
The U.S. Securities and Exchange Commission (SEC) has officially closed its investigation into Robinhood Crypto (RHC) without taking any enforcement action. The company received notification from the SEC on February 21, 2025, marking the end of a probe that had raised concerns about the platform’s compliance with securities regulations in its cryptocurrency operations.
A Year-Long Investigation Comes to a Close
The SEC’s investigation focused on whether Robinhood improperly offered certain digital assets that should have been registered as securities. In May 2024, the company received a Wells Notice, an official warning that the SEC might take legal action for alleged violations of securities laws.
Under previous SEC Chair Gary Gensler, the agency took an aggressive stance, arguing that most digital assets fell under federal securities laws.
Robinhood, however, maintained that it had always complied with federal regulations and never listed cryptocurrencies that could be classified as securities.
The company pushed back against the SEC’s enforcement-driven approach, arguing that the lack of clear regulations for digital assets created unnecessary legal uncertainty.
Regulatory Shift Under the Trump Administration
The decision to close the case comes as the SEC takes a more lenient stance on cryptocurrency regulation under President Donald Trump’s administration.
Many industry experts see this as a departure from the aggressive enforcement approach taken under the previous leadership. Scott Acheychek, COO of REX Financial, described the decision as a positive signal for the crypto industry, suggesting that regulators may be moving toward a more structured and transparent rulemaking process instead of unpredictable enforcement actions.
Robinhood executives also welcomed the outcome. Dan Gallagher, Chief Legal, Compliance, and Corporate Affairs Officer at Robinhood Markets, Inc., expressed relief over the closure, stating that the case never should have been opened in the first place. The company continues to advocate for clear, consistent rules for digital assets rather than what it sees as a regulation-by-enforcement approach.
Initially, Robinhood’s stock price saw a brief uptick following the SEC’s announcement. However, investor sentiment quickly shifted, and shares ultimately fell 3.2% by the end of the trading session.
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