SEC Drops Robinhood Case: A New Chapter for Crypto

The U.S. Securities and Exchange Commission (SEC) has concluded its investigation into Robinhood, the popular trading platform, without taking any enforcement action. This decision comes just days after the SEC agreed to drop its lawsuit against Coinbase, another major player in the crypto industry.

In a press release, Robinhood announced that the SEC's Enforcement Division had informed the exchange in a letter that it had closed its investigation and would not be pursuing an enforcement action. This marks the end of the Robinhood case, which began last year when the company received a Wells Notice from the regulator.

The SEC's decision to drop the case against Robinhood is a significant development for the crypto industry. The investigation had been ongoing for over a year, and the outcome had been closely watched by industry participants and investors alike. The SEC's decision to close the case without taking any action suggests that the regulator may be taking a more lenient approach to the crypto industry, or that it may be focusing its resources on other priorities.

The SEC's investigation into Robinhood was launched in response to concerns about the company's handling of the GameStop short squeeze in January 2021. The SEC had alleged that Robinhood had engaged in market manipulation and failed to disclose material information to its customers. However, the SEC's decision to drop the case without taking any action suggests that these allegations were not substantiated.

The SEC's decision to drop the case against Robinhood is a positive development for the crypto industry, as it suggests that the regulator may be taking a more cooperative approach to working with crypto companies. This could help to promote innovation and growth in the industry, while also ensuring that investors are protected from fraud and market manipulation.