Robinhood says the SEC has ended the regulator’s probe into Robinhood Crypto.
SEC issued a Wells Discover to Robinhood Crypto in Might 2024.
SEC’s closing of the Robinhood Crypto investigation comes days after the company closed an identical probe towards Opensea.
The US Securities and Alternate Fee has dropped its investigation into Robinhood’s digital property arm.
Robinhood introduced by way of weblog submit on Monday, Feb. 24 that the SEC has closed its enforcement motion probe towards the corporate.
“We applaud the workers’s choice to shut this investigation with no motion,” mentioned Dan Gallagher, chief authorized officer of Robinhood Markets.
The SEC’s choice to finish its investigation into Robinhood comes simply days after one other platform, Opensea, mentioned the regulator was ending its probe.
Each Robinhood and Opensea obtained ‘Wells Notices’ from the SEC in 2024.
Final week, crypto trade Coinbase additionally introduced the regulator had agreed to dismiss the lawsuit it had filed towards the US-based firm in 2023.
SEC closes Robinhood probe
Within the weblog submit on Monday, Robinhood mentioned it obtained communication from the SEC’s Enforcement Division on Friday, Feb. 21.
The letter detailed the company’s choice to finish the investigation into Robinhood Crypto, with no additional motion. SEC’s Wells Discover alleged potential securities legal guidelines violations by the buying and selling platform.
Nonetheless, Robinhood maintained it had not violated any securities legal guidelines and didn’t provide securities to customers.
“This investigation by no means ought to have been opened,” Gallagher added. “Robinhood Crypto at all times has and can at all times respect federal securities legal guidelines and by no means allowed transactions in securities. As we defined to the SEC, any case towards Robinhood Crypto would have failed. We respect the formal closing of this investigation, and we’re completely happy to see a return to the rule of regulation and dedication to equity on the SEC.”
The SEChas taken a extra pro-crypto innovation stance because the exit of former chair Gary Gensler. President Donald Trump’s appointment of pro-crypto people into positions on the company has helped this shift, together with the institution of a crypto process pressure by performing chair Mark Uyeda.
