The US Securities and Change Fee (SEC) has formally closed its investigation into Robinhood Crypto, deciding to not take enforcement motion.
The crypto buying and selling platform disclosed this replace on February 24, simply days after being knowledgeable of the choice.
The SEC’s Enforcement Division notified Robinhood on February 21 that it will not transfer ahead with penalties. This investigation started in Might 2024 when Robinhood obtained an SEC Wells discover, which signaled that regulators had been contemplating enforcement motion over potential securities violations.
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Reacting to the information, Dan Gallagher, Robinhood’s chief compliance officer, said that “this investigation ought to by no means have been opened”. He emphasised that Robinhood Crypto has all the time adopted federal securities legal guidelines and has by no means allowed securities transactions on its platform.
Whereas this investigation has ended with out penalties, Robinhood just lately settled a separate case with the SEC. In January, the corporate agreed to pay $45 million after admitting to sure findings associated to violations of over ten securities legal guidelines.
Following the closure of this investigation, Robinhood urged regulators to concentrate on offering clear guidelines for the crypto business as an alternative of counting on enforcement actions. Many within the business share this view, arguing {that a} extra structured strategy would assist companies adjust to laws.
In the meantime, former SEC lawyer John Reed Stark made a prediction concerning the SEC’s authorized battles with crypto corporations. What did he say? Learn the complete story.
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