The SEC has closed its investigation into Robinhood Crypto, taking no further action. Robinhood’s Chief Legal Officer, Dan Gallagher, supported the decision.
SEC Drops Case Against Robinhood
The SEC has officially closed its investigation into Robinhood Crypto, as stated by Robinhood's Chief Legal Officer, Dan Gallagher.
Robinhood's Response to the Investigation
Dan Gallagher stated that Robinhood Crypto always adhered to federal securities laws and did not allow any securities transactions on its platform. He insisted that the SEC would have lost the case against them. "We are grateful for the formal closure of this investigation and happy to see a return to the rule of law and commitment to fairness at the SEC," Dan said.
Implications and Future Regulations
In May 2024, Robinhood received a notice about potential charges concerning securities law violations in its crypto unit. At that time, the SEC accused many crypto companies of securities law violations. Robinhood made cautious decisions to avoid SEC issues. Following the end of the investigation, Dan added that the company wants clearer crypto regulations through official guidelines rather than enforcement actions.
The closure of the SEC investigation into Robinhood Crypto highlights the need for clear rules for crypto platforms and a shift in regulatory approach.
