US SEC Closes Investigation Into Robinhood Without Legal Action
The US Securities and Exchange Commission (SEC) has officially ended its investigation into Robinhood without taking any legal action against the crypto exchange. This decision comes shortly after the SEC also dropped its lawsuit against Coinbase.
SEC Ends Robinhood Case With No Enforcement Action
Robinhood announced in a press release that the SEC’s Enforcement Division has concluded its investigation and will not be pursuing any charges. The case began last year when Robinhood received a Wells Notice, signaling potential regulatory action. However, the SEC has now confirmed that it will not proceed with enforcement.
Robinhood’s Chief Legal, Compliance, and Corporate Affairs Officer, Dan Gallagher, welcomed the decision, stating:
“We applaud the SEC’s decision to close this investigation without action. This case should never have been opened in the first place. Robinhood Crypto has always adhered to federal securities laws and never allowed securities transactions. Any case against us would have failed. We appreciate the formal closure and the SEC’s renewed commitment to fairness and the rule of law.”
SEC’s Changing Approach to Crypto Regulation
The SEC’s decision to drop the Robinhood and Coinbase cases signals a regulatory shift under acting Chair Mark Uyeda. This marks a departure from Gary Gensler’s enforcement-heavy approach, suggesting a more constructive stance toward the crypto industry.
Robinhood Calls for Clearer Regulations
Robinhood expressed its willingness to collaborate with the SEC under the new administration to establish transparent and well-defined crypto regulations. The exchange urged the SEC to move away from regulation by enforcement and instead adopt a clear regulatory framework to provide market participants with legal certainty.
Potential Implications for the Ripple Case
With the SEC moving away from non-fraud enforcement actions, speculation is growing that it may soon withdraw its appeal against Ripple. Legal expert MetaLawMan predicts that the Ripple vs. SEC case could be resolved before April 16.
