The United States Securities and Exchange Commission (SEC) is ending its investigation into the crypto unit of Robinhood, as the company announced on Monday, February 24.
The mentioned firm has released the information according to which, at the end of last week, it received a letter from the enforcement division of the specified regulator. In this case, the agency announced the completion of its investigation into the company’s crypto business without any intention of taking enforcement action. It is worth noting that this news was published three days after Coinbase stated that the SEC had agreed to terminate the enforcement case regarding it.
The value of Robinhood shares showed growth in the background of the mentioned news. However, the upward dynamic has weakened over time.
Last May, Robinhood received a notice warning that it could be charged for potential violation of securities law within its crypto arm. It is worth noting that before this, the company was being subpoenaed for listing cryptocurrencies, custody, and platform operations, despite many years of faith attempts to work with the SEC to clarify regulatory requirements. This was revealed by Dan Gallagher, the firm’s chief legal, compliance, and corporate affairs officer, in May last year.
In a statement released on Monday, it was noted that Robinhood Crypto has always respected and will continue to respect federal securities laws, and has never allowed transactions in securities. The company also stated that it appreciates the formal closing of the investigation and is happy to see a return to the rule of law and a commitment to fairness at the SEC.
The regulator did not respond to a media request for comment on the completion of the mentioned investigation.
It is worth noting that the SEC’s dismissal of the Robinhood and Coinbase cases is largely an indicative decision sending a positive signal to the cryptocurrency industry. In this case, there is actually an early sign of fundamental changes in the approach to regulating the crypto area. It is worth noting that this is exactly what the President of the United States, Donald Trump, promised during the election campaign last year. Mr. Trump’s administration has even received a kind of pro-crypto status. Against this background, the mentioned decision of the regulator is what can be called the realization of expectations.
Bitcoin showed rapid growth during the administration of the previous President of the United States Joe Biden. At the same time, many companies operating in the cryptocurrency industry and analysts believed that the mentioned indicator could have increased on a much larger scale if the SEC had taken a more friendly approach to interacting with the digital money area. In this case, first of all, the need for clear rules that can regulate the business of crypto firms was implied.
In the fourth quarter of 2024, almost half of Robinhood’s $672 million in transaction-based revenue came from a 700% increase in earnings related to crypto trading. In this case, the impact factor on the result was that bitcoin rallied towards $100,000 for the first time ever amid hopes for a favorable policy from the Donald Trump administration regarding the crypto industry.
It is also worth noting that since the beginning of the current year, the value of Robinhood shares has increased by 38%.
The mentioned company is one of the largest players in the financial services industry. It is worth noting that against the background of the development of advanced technologies, including artificial intelligence, the threat of fraud has become more relevant for this industry. Fraudsters also have access to AI tools, which is why their activities have become more sophisticated. Personal awareness of users is important to counter the corresponding threat in the cybersecurity area. For example, an Internet search query such as how to know if my camera is hacked will allow anyone to get information about signs of unauthorized access to a personal device. Digital literacy is an effective tool for countering cybercrime. At the same time, relevant knowledge should be updated periodically, as the mentioned criminals strive to use the most advanced technologies in their activities.
