Robinhood stated a regulatory probe of its cryptocurrency unit ended with out incident.
The Securities and Trade Fee (SEC) ultimate 12 months issued a Wells understand towards the monetary services and products platform, most often noticed as a caution of pending enforcement motion.
Then again, Robinhood stated in a Monday (Feb. 24) press unlock that it were given a letter from the SEC informing the corporate that the fee concluded its investigation and had no plans to observe up with enforcement motion.
“We applaud the team of workers’s choice to near this investigation without a motion,” Robinhood Leader Prison Officer Dan Gallagher stated within the unlock. “Let me be crystal transparent. This investigation by no means must were opened. Robinhood Crypto at all times has and can at all times recognize federal securities regulations and not allowed transactions in securities. As we defined to the SEC, any case towards Robinhood Crypto would have failed.”
Reached by means of PYMNTS, an SEC spokesperson declined to remark.
Robinhood’s announcement got here days after any other crypto company, Coinbase, stated the SEC was once set to brush aside its lawsuit towards the corporate.
“This might be a complete dismissal, with $0 in fines paid and nil adjustments to our trade,” CEO Brian Armstrong wrote in a put up on social platform X.
The SEC sued Coinbase in June 2023, accusing the corporate of violating securities regulations and arguing that Coinbase’s trade “intertwines the standard services and products of an change, dealer and clearing company” with out registering the ones purposes with the SEC, as required by means of regulation.
It was once a part of an ongoing crackdown by means of the SEC on crypto corporations below the President Joe Biden management. With the President Donald Trump management in price, on the other hand, attitudes towards crypto seem to be converting.
For instance, the SEC ultimate week introduced it was once changing its Crypto Property and Cyber Unit with a smaller workforce known as the Cyber and Rising Applied sciences Unit.
Robinhood was once penalized by means of the SEC in January, despite the fact that that measure got here within the ultimate days of the Biden management.
The SEC stated two Robinhood broker-dealers agreed to pay $45 million in blended civil consequences to settle fees that they failed to stick to a “wide array” of regulatory necessities.
