Coinspeaker
Feb 24, 2025

US SEC Closes Investigation into Robinhood Crypto Without Action

2 min

The crypto division of Robinhood Markets Inc. has successfully resolved a Wells Notice from the SEC, which indicated an intention to take enforcement action against the exchange. The SEC's Enforcement Division has confirmed the conclusion of its investigation without pursuing any charges.

Key Developments

  • The SEC communicated to Robinhood Crypto that it would not take any enforcement action.
  • Dan Gallagher, Robinhood’s Chief Legal Officer, criticized the initial issuance of the Wells Notice, asserting compliance with federal securities laws.
  • Robinhood has adhered to regulatory standards, including compliance with Europe’s MiCA regulation and expansion into Spain.
  • Former SEC Chair Gary Gensler categorized some products as securities, while analysts view current acting Chair Mark Uyeda's approach as fairer.
  • Gallagher advocates for a shift towards structured regulations rather than “regulation by enforcement.”
  • Robinhood reported $672 million in transaction-based revenue for Q4, with approximately half stemming from a 700% increase in crypto trading during Bitcoin's rise to $100,000.

Speculation continues around potential changes in crypto policy following Donald Trump's election victory, with Gallagher previously considered a candidate to replace Gensler.