SEC Drops Investigation into Robinhood’s Crypto Division

The U.S. Securities and Exchange Commission (SEC) has ended its investigation into the crypto division of the online broker Robinhood.

According to a press release, the regulator’s enforcement division informed the company of the conclusion of the review with no intention to press charges.

In May 2024, the SEC warned the company of potential violations of securities laws. At that time, the agency was examining the listing of cryptocurrencies, fund custody, and platform operations.

“We have always respected federal securities laws and never allowed trading in them,” said Robinhood’s Chief Legal Officer Dan Gallagher.

According to him, the company is pleased with the SEC’s decision and sees it as a “return to the rule of law.”

Following the news, Robinhood’s shares rose by 3% in pre-market trading. Since the beginning of the year, the company’s securities have gained 30.83%.

Earlier, on February 21, Coinbase CEO Brian Armstrong announced that SEC staff agreed to cease legal proceedings against the exchange. This week, the agency’s commissioners are expected to approve the decision.