In another sign that the Trump administration will be friendlier toward the cryptocurrency industry, the Securities and Exchange Commission is dropping an investigation into Robinhood. The agency has informed the company that it won’t move forward with any enforcement action, Robinhood said on Monday.
In May last year, Robinhood received a Wells Notice from the SEC indicating that the agency’s staff was going to recommend enforcement action against it. The company had faced potential charges of violating securities law through its crypto listings and sales. Under the Biden administration, there was some momentum for cryptocurrency to be considered and regulated as securities; Trump's policy goals seem to signal the opposite.
"Robinhood Crypto always has and will always respect federal securities laws and never allowed transactions in securities," Dan Gallagher, Robinhood’s chief legal, compliance and corporate affairs officer, said in a statement. "As we explained to the SEC, any case against Robinhood Crypto would have failed. We appreciate the formal closing of this investigation, and we are happy to see a return to the rule of law and commitment to fairness at the SEC."
Robinhood added that it was looking forward to working with the SEC to develop a clearer and more "tailored" regulatory framework for digital assets. The company introduced its crypto wallet in 2022, but it has faced regulatory trouble. New York officials handed the crypto side of Robinhood's business a $30 million fine in 2022 and in 2024, the company reached a $3.9 million settlement with California over crypto withdrawal claims. Meanwhile, just last month, Robinhood agreed to pay $45 million to settle SEC charges related to record keeping, trade reporting and other alleged rule violations.
Last week, Coinbase said the SEC was dropping a case against it. In a lawsuit filed during the Biden administration, the agency had accused that company of running an unregistered securities exchange.
This article originally appeared on Engadget at https://www.engadget.com/big-tech/the-sec-is-dropping-an-investigation-into-robinhood-160629179.html?src=rss https://www.engadget.com/big-tech/the-sec-is-dropping-an-investigation-into-robinhood-160629179.html?src=rssLogin to add comment
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