Robinhood applauds SEC’s move to drop investigation into its crypto business

The Securities and Exchange Commission has officially closed its probe into Robinhood arsenic the bureau moves distant from its crypto crackdown, the fintech steadfast said connected Monday.

Dan Gallagher, Robinhood’s main ineligible officer, applauded the determination and ”a instrumentality to the regularisation of instrumentality and committedness to fairness astatine the SEC.”

“Let maine beryllium crystal wide — this probe ne'er should person been opened,” helium said. “Robinhood Crypto ever has and volition ever respect national securities laws and ne'er allowed transactions successful securities.”

He said the firebrand run against crypto led by Gary Gensler, the erstwhile seat of the SEC, adjacent dissuaded the banal trading app from providing definite products and services to its users.

HOOD banal dropped 5% astatine marketplace unfastened connected Monday.

The SEC told Robinhood it would instrumentality enactment against the institution for alleged securities violations successful May 2024 — an allegation the regulator launched astatine a slew of crypto stalwarts.

The SEC has not officially confirmed the news.

“We diminution comment,” an SEC spokesperson told DL News.

Robinhood did not instantly respond to requests for comment.

Robinhood’s crypto services contributed to a 58% leap successful Robinhood’s nett full gross of $2.9 cardinal successful 2024. Crypto besides helped the brokerage grounds nett income of $1.4 billion.

“We tin beryllium a large player,” Johann Kerbrat, the trading app’s crypto boss, told DL News successful January.

Coinbase and Binance

Since President Donald Trump appointed Mark Uyeda arsenic the acting president of the SEC successful January, respective investigations into assorted crypto companies person been enactment connected clasp oregon dismissed.

Under the Gensler, the regulator took purpose astatine immoderate of the industry’s largest crypto exchanges, specified arsenic Coinbase and Binance, for allegedly operating an unregistered securities exchange.

Coinbase announced connected February 21 that the bureau “agreed successful rule to disregard its unlawful enforcement case” against the crypto exchange.

In a question filed with Binance and its erstwhile CEO Changpeng Zhao connected February 11, the SEC announced it would intermission its suit against the speech for 60 days.

Devin Finzer, the CEO and laminitis of the non-fungible token level OpenSea, announced connected February 22 that the SEC had besides closed its probe into the crypto company. The regulator alleged NFTs sold connected the level were unregistered securities successful August 2024.

The SEC’s determination to hold and disregard aggregate lawsuits targeting large crypto firms is an bonzer development. And 1 not mislaid connected the agency’s erstwhile staffers.

“Buckle up, get the popcorn, and get acceptable for the SEC funeral,” John Reed Stark, the erstwhile main of the SEC’s Office of Internet Enforcement and crypto critic, wrote connected Thursday.

“Of course, erstwhile the crypto contagion spreads crossed the planetary superior marketplace similar wildfire and the crypto-crime question floods US cities and towns similar a tsunami, inquire not for whom the doorbell tolls, it tolls for thee.”

Liam Kelly is simply a Berlin-based newsman for DL News. Got a tip? Email him astatine [email protected].