The US SEC halts investigation into Robinhood (HOOD.US), signs of loosening regulations in the cryptocurrency industry.

The U.S. Securities and Exchange Commission (SEC) announced on Monday that it will end its investigation into Robinhood's cryptocurrency division and will not take further enforcement action. Last Friday, Robinhood revealed that it had received a letter from the SEC's enforcement division stating that the investigation into its cryptocurrency business had concluded and no further enforcement action would be taken. This news comes just three days after Coinbase announced that the SEC had agreed to end its enforcement case against them. As early as May 2024, Robinhood received a notice informing them that their cryptocurrency division could face charges for violating securities laws. The company had previously received subpoenas related to cryptocurrency listings, custody, and platform operations. Dan Gallagher, Robinhood's Chief Legal, Compliance, and Corporate Affairs Officer, stated, "Despite our sincere efforts over the years to work with the SEC to gain regulatory clarity, including our well-known 'come in and register' efforts." In a statement on Monday, Dan Gallagher emphasized, "Robinhood Crypto has always respected federal securities laws and has never allowed securities trading. We welcome the formal conclusion of this investigation and are pleased to see the SEC return to the rule of law and a commitment to fairness." An SEC spokesperson declined to comment on the matter. The rejection of the lawsuits against Robinhood and Coinbase is seen as an early sign of the regulatory changes in the cryptocurrency industry promised by former President Trump during his campaign. Under the leadership of the previous administration, many cryptocurrency companies viewed the SEC's harsh enforcement approach under then-Chairman Gary Gensler as a low point, rather than establishing clear operational rules. With the potential for the Trump administration to introduce more favorable policies, the price of Bitcoin rose to $100,000 for the first time. Nearly half of Robinhood's $6.72 billion in trading revenue in the fourth quarter came from cryptocurrency trading, with that revenue segment seeing a 700% growth. By 2025, Robinhood's stock price had risen by 34%.