The U.S. Securities and Trade Fee has ended its investigation into buying and selling platform Robinhood Crypto “with no motion,” the corporate mentioned in an announcement.
In keeping with the agency, the SEC’s Enforcement Division suggested Robinhood Crypto that “it had concluded its investigation and didn’t intend to maneuver ahead with an enforcement motion,” after sending the corporate a Wells Discover in Might 2024 notifying it of a pending enforcement motion.
The SEC didn’t instantly reply to a request for remark from Decrypt.
In an announcement, Robinhood Markets’ head of authorized and compliance, Dan Gallagher, mentioned that “this investigation ought to by no means have been opened,” arguing that the agency “by no means allowed transactions in securities.”
For a time, Gallagher was floated as a possible substitute for former SEC Chair Gary Gensler. However he made it very clear that it was a nonstarter.
“It’s at all times an honor to have your identify within the combine for an extremely vital job like SEC Chairman,” Gallagher advised Decrypt in an announcement. “Nevertheless, I’ve made it clear that I don’t want to be thought-about for this place.”
The conclusion of the SEC’s Robinhood investigation mirrors what the business has seen in numerous such instances in current days. Final Friday, the regulator ended its investigation into NFT market OpenSea, simply hours after reaching an settlement in precept to drop fees towards crypto change Coinbase.
For the reason that inauguration of U.S. President Donald Trump, the SEC has shifted its stance in the direction of crypto, launching a brand new job drive underneath crypto-friendly commissioner Hester Peirce, and rescinding its Workers Accounting Bulletin (SAB) No. 121, which critics argued created pointless complexity for crypto platforms.
Shares in Robinhood noticed a slight bump in premarket buying and selling, up 2.4% per Yahoo Finance, after having closed Friday down 7.9% from open.
Edited by Stacy Elliott.
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