The Securities and Exchange Commission (SEC) has dropped its investigation into Robinhood’s crypto arm, signaling a shift in regulatory approach for the cryptocurrency industry. Robinhood received a notice in May 2024 warning of potential securities law violations within its crypto unit, but the SEC has now closed the investigation with no enforcement action. This news comes shortly after Coinbase also announced the end of an SEC enforcement case against it.
Robinhood has stated that it has always respected federal securities laws and has never allowed transactions in securities through its crypto platform. The company expressed appreciation for the formal closing of the investigation, highlighting a commitment to the rule of law and fairness at the SEC. The recent dismissal of the Robinhood and Coinbase cases suggests a change in regulatory strategy for the crypto industry, as promised by former President Donald Trump during his election campaign.
Robinhood’s revenue from crypto trading saw a significant increase in the fourth quarter of 2024, contributing to nearly half of its transaction-based revenue. This growth coincided with a surge in bitcoin price and expectations of more favorable policies under the Trump administration. The shares of Robinhood have risen by 38% in 2025, reflecting investor confidence in the company’s prospects.
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