SEC Closes Robinhood Crypto Probe, Signals Shift

The U.S. Securities and Exchange Commission (SEC) has closed its investigation into Robinhood's cryptocurrency operations without pursuing any enforcement action. This decision marks a potential regulatory shift under President Donald Trump's administration, which aims to provide clearer guidance for digital assets. Robinhood had received a Wells Notice in May 2024, indicating possible enforcement due to alleged securities violations. However, Robinhood maintained compliance with federal securities laws and welcomed the investigation's closure as a return to fairness and the rule of law. The SEC's similar recent dismissal of a case against Coinbase further suggests a move away from the previous enforcement-heavy approach under former SEC Chair Gary Gensler. This development is expected to boost investor confidence and support Robinhood's expansion in the crypto market.