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    Nidhi is a Certified Digital Marketing Executive and Passionate crypto Journalist covering the world of alternative currencies. She shares the latest and trending news on Cryptocurrency and Blockchain.

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  • 2 minutes read

Major Win! SEC Drops Case Against Robinhood’s Crypto Arm, Market Reacts

Story Highlights
  • The SEC has closed its investigation into Robinhood's crypto arm without taking any action. ย 

  • This follows a similar SEC decision regarding Coinbase, indicating a possible regulatory shift.

  • Robinhood maintains it always complied with securities laws, and criticized the initial investigation.

Robinhood announced on Monday that the U.S. Securities and Exchange Commission (SEC) has officially closed its investigation into the companyโ€™s crypto division. In a blog post, Robinhood shared that it received a letter from the SECโ€™s Enforcement Division on Friday, confirming that the case is closed with no further action planned.

A Positive Turn for Robinhood and Crypto Regulation

This decision comes just days after Coinbase revealed that the SEC was also dropping its enforcement case against them. Following the news, Robinhoodโ€™s stock jumped over 3% in premarket trading.

Dan Gallagher, Robinhoodโ€™s Chief Legal, Compliance, and Corporate Affairs Officer, welcomed the move.

โ€œWe applaud the staffโ€™s decision to close this investigation with no action. Let me be crystal clearโ€”this investigation never should have been opened,โ€ he remarked.

โ€œWe appreciate the formal closure of this investigation and are glad to see a return to the rule of law and fairness at the SEC,โ€ Gallagher added.

Robinhood Crypto has repeatedly stated that it follows federal securities laws and does not allow transactions in securities. The company argued that, based on its discussions with the SEC, any case against it would not have been successful.

Besides, Robinhood has long disagreed with the view that most digital assets fall under federal securities laws. Unlike other platforms, Robinhood noted that chose not to offer certain products and services that the SEC, under Chair Gensler, considered to be securities. The company aims to help create a more transparent and tailored regulatory environment for digital assets and looks forward to working with the SEC under the new administration to establish clear guidelines.

Robinhood remarked that itโ€™s time for the SEC to shift from regulation by enforcement to regulation through clear rules, giving market participants clarity and a proper framework for digital assets.

A Shift in the SECโ€™s Crypto Approach?

The SECโ€™s decision to drop cases against both Robinhood and Coinbase could indicate a change in how the agency regulates crypto. This aligns with President Donald Trump โ€™s campaign promises to take a more supportive approach to the industry. Under the previous administration, Bitcoin saw strong growth, but many crypto companies struggled under the SECโ€™s strict enforcement policies under former Chair gary gensler , who favored aggressive crackdowns over clear guidelines for the industry.

A regulatory crackdown defined the past few yearsโ€”this decision hints at a different future.

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