SEC Closes Investigation into Robinhood Crypto With No Action

The United States Securities and Exchange Commission (SEC) has chosen to disregard its probe of Robinhood Crypto

According to the Robinhood blog post, the steadfast received a missive from the SEC connected Feb 21, stating that it had concluded its probe and would not instrumentality immoderate action. This comes aft a Wells Notice from the SEC to Robinhood successful May 2024. 

A Wells Notice usually means the SEC is considering bringing charges against a company, but this time, nary charges were filed.

Robinhood’s Chief Legal Officer, Dan Gallagher, spoke astir the ruling. He said, “We applaud the staff’s determination to adjacent this probe with nary action.” 

He stated that determination should ne'er person been an investigation, arsenic Robinhood Crypto has ever followed national securities laws. He further pointed retired that Robinhood did not let immoderate tradings successful securities connected its platform.

Robinhood is 1 of galore firms that disagreed with the stance astir integer assets tin beryllium treated arsenic securities, still, the institution decided to debar offering services that different companies mightiness person offered.

Gallagher said immoderate specified enforcement enactment brought against Robinhood Crypto would person failed and thanked the SEC for officially closing the matter. He further said that Robinhood would support pursuing the rules and assistance bring astir a amended and clearer acceptable of rules for integer assets.

Meanwhile, the crypto abstraction has been seeing changes successful the mode regulators attack integer assets. Under President Donald Trump’s administration, the SEC has been reviewing its cryptocurrency regulations.

The SEC precocious formed a dedicated unit to springiness clearer guidelines connected crypto. It has besides taken steps to loosen choky regulations, similar overturning immoderate accounting rules.

The abstraction sees this alteration arsenic a bully sign, particularly since Paul Atkins, Trump’s prime for SEC chair, volition much apt propulsion a much affable stance towards crypto. Robinhood’s banal climbed 3.3% successful premarket trading aft uncovering retired that the probe was dropped.

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