SEC Drops Robinhood Crypto Probe, Shares Surge 2.5%

The U.S. Securities and Exchange Commission (SEC) has recently shifted its stance on cryptocurrency oversight, leading to the cessation of its investigation into Robinhood, a prominent exchange. This move comes as a significant turnaround for the company, as the dropping of charges resulted in a 2.5% surge in its shares.

Dan Gallager, Robinhood's chief legal and compliance officer, announced the news on February 24th via a blog post. The company received the news of the dropped investigation last Friday, marking another major victory for the crypto industry. This is not the first time the SEC has reversed its course, as it has previously dropped charges against companies like OpenSea, Coinbase, and even Changpeng Zhao.

Robinhood's CLO took to social media to express his thoughts on the matter, stating, "Instead of regulation by enforcement, it's time for the SEC to turn to regulation by regulation." He further emphasized the need for "providing market participants with clarity and an appropriate regulatory framework for digital assets."

This noticeable shift in the SEC's approach is an effort to undo the legacy of Gary Gensler's tenure, during which approximately 120 complaints were filed against crypto firms. Many of these complaints were "ambiguous and capricious" in nature, reflecting Gensler's views on cryptocurrency. Mark Uyeda, the current SEC chair, is spearheading this change in approach.

The SEC's shift towards a more crypto-friendly stance is crucial for the agency to remain relevant and future-proof in the rapidly evolving digital asset landscape.