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

Robinhood announced on Monday that the U.S. Securities and Exchange Commission (SEC) has officially closed its investigation into the company’s crypto division. In a blog post, Robinhood shared that it received a letter from the SEC’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, Robinhood’s stock jumped over 3% in premarket trading.

Dan Gallagher, Robinhood’s Chief Legal, Compliance, and Corporate Affairs Officer, welcomed the move.

“We applaud the staff’s decision to close this investigation with no action. Let me be crystal clear—this investigation never should have been opened,” he remarked.

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“We appreciate the formal closure of this investigation and are glad to see a return to the rule of law and fairness at the SEC,” 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 it’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 SEC’s Crypto Approach?

The SEC’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 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 ’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 SEC’s strict enforcement policies under former Chair gary gensler gary gensler Gary Gensler is the chairman of the U.S. Securities and Exchange Commission (SEC). His studies in finance and blockchain at MIT have helped him develop U.S. cryptocurrency regulations and policies. Quick Facts Full name Gary Scott Gensler Birth 18-10-1957, Baltimore, Maryland, United States Nationality American Education MBA from the University of Pennsylvania Marital status Married to Francesca Danieli (1986-2006) Net worth Estimated $100 million   Gensler has advocated for enhanced supervision of digital assets, seeking to regulate cryptocurrencies similar to securities. His work at the SEC has focused on safeguarding investors, regulating crypto exchanges, and establishing stablecoin policies.   Gary Gensler - Career Highlights 1997 – Became Assistant Secretary of the Treasury. 2009 – Led CFTC, regulating financial derivatives post-2008 crisis. 2018 – Taught blockchain and crypto at MIT. 2021 – Appointed SEC Chairman, focusing on crypto regulations. 2022 – Proposed stricter rules for crypto exchanges. 2023 – Took legal action against major crypto firms. 2024 – Advocated for stronger stablecoin and DeFi regulations.   Gary has collaborated with multiple lawmakers in formulating crypto policies. Even with disagreements with crypto investors regarding crypto policies, he continues to be a key player in the changing dynamic between regulatory frameworks and blockchain advancement.   Awards & Recognitions of Gary Gensler Year Institution  Description 2009 U.S. Treasury Financial Regulation Leader 2018 MIT Blockchain & Crypto Educator 2021 SEC SEC Chairman Overseeing Crypto Policies 2023 Bloomberg Most Influential Regulator in Crypto 2024 Forbes Top Policy Maker in Digital Assets   Useful Links to Connect With Gary Gensler Platform Link X (formerly Twitter) twitter.com/GaryGensler CFTC website Chairman Gary Gensler   Chairman , who favored aggressive crackdowns over clear guidelines for the industry.

A regulatory crackdown defined the past few years—this decision hints at a different future.