Robinhood Scores Big Win as SEC Dismisses Crypto Unit Investigation

The post Robinhood Scores Big Win as SEC Dismisses Crypto Unit Investigation appeared first on Coinpedia Fintech News

Recently, Robinhood platform announced Monday that the SEC is dropping its investigation into its crypto arm. The company shared in a detailed blog post that it received a letter from the SEC’s Enforcement Division on Friday, confirming the case is closed with no further action planned. 

Notably, this move follows Coinbase’s announcement just days earlier that the SEC is ending its enforcement case against them. Following the news, Robinhood’s shares jumped over 3% in premarket trading.

“We applaud the staff’s decision to close this investigation with no action,” said Dan Gallagher, Chief Legal, Compliance and Corporate Affairs Officer, Robinhood Markets, Inc. “Let me be crystal clear—this investigation never should have been opened,” he remarked.

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Robinhood Crypto emphasizes that it has always followed federal securities laws and never allowed transactions in securities. The company stated that, based on their explanation to the SEC, any potential case against Robinhood Crypto would not have been successful. “We appreciate the formal closing of this investigation, and we are happy to see a return to the rule of law and commitment to fairness at the SEC,” he added. 

The SEC’s decision to drop the cases against Robinhood and Coinbase signals a potential shift in crypto regulation, something President Donald Trump

Donald Trump

Donald Trump is an American former president politician, businessman, and media personality, who served as the 45th president of the U.S. between 2017 to 2021. Trump earned a Bachelor of science in economics from the University of Pennsylvania in 1968. Trump won the 2016 presidential election as the Republican Party nominee against Democratic Party nominee Hillary Clinton while losing the popular vote. As president, Trump ordered a travel ban on citizens from several Muslim-majority countries, diverted military funding toward building a wall on the U.S.–Mexico border, and implemented a family separation policy. Trump has remained a prominent figure in the Republican Party and is considered a likely candidate for the 2024 presidential election

President

promised during his campaign. While Bitcoin soared in value under the previous administration, many crypto businesses struggled due to the SEC’s tough, enforcement-based approach under former chair gary gensler

gary gensler

Gary Gensler is a pioneer and the current chair of the U.S. Securities and Exchange Commission. He has extensive experience that spans Wall Street, government regulation, and an angel teaching about cryptocurrencies and blockchain at MIT. Gary S. Gensler was on born October 18, 1957, in Baltimore, Maryland.He graduated from Pikesville High School in 1975, where he was later given a Distinguished Alumnus award. He also earned a degree in economics.Gensler served in the United States Department of the Treasury as Assistant Secretary for Financial Markets from 1997 to 1999, then as Undersecretary for Domestic Finance from 1999 to 2001He has expressed his desire to present crypto-related approach changes later on that include token commitments, decentralized finance, stablecoins, guardianship, exchange-traded resources, and advancing stages.

Chairman

, instead of clear and fair rules for the industry.