Robinhood, Coinbase: SEC Drops Crypto Cases, Signaling Potential Shift

Robinhood, the popular online brokerage platform, has scored a significant victory as the U.S. Securities and Exchange Commission (SEC) has dismissed its investigation into the company's crypto unit. In a blog post, Robinhood announced that it had received a letter from the SEC's Enforcement Division on Friday, confirming the closure of the case with no further action planned.

This development comes just days after Coinbase, another major cryptocurrency exchange, announced that the SEC had ended its enforcement case against the company. Following the news, Robinhood's shares surged over 3% in premarket trading. Dan Gallagher, Chief Legal, Compliance and Corporate Affairs Officer at Robinhood Markets, Inc., welcomed the decision, stating, "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."

Robinhood Crypto emphasized that it has always adhered to federal securities laws and has never allowed transactions in securities. The company maintained that, based on its explanation to the SEC, any potential case against Robinhood Crypto would not have been successful. Gallagher added, "We appreciate the formal closing of this investigation, and we are happy to see a return to the rule of law and commitment to fairness at the SEC."

The SEC's decision to drop the cases against Robinhood and Coinbase signals a potential shift in crypto regulation. During his campaign, President Donald Trump had promised a more favorable approach to cryptocurrencies. While Bitcoin's value soared under the previous administration, many crypto businesses struggled due to the SEC's tough, enforcement-based approach under former chair Gary Gensler, which lacked clear and fair rules for the industry.