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US SEC Closes Investigation Into Robinhood's Crypto Business
On Feb 21. the SEC’s Enforcement Division said it had concluded its investigation, Robinhood said in a statement.
Updated Feb 24, 2025, 8:06 p.m. Published Feb 24, 2025, 2:49 p.m.
What to know:
The U.S. Securities and Exchange Commission has closed its investigation into Robinhood's crypto business, the trading platform said in a statement on Monday.
"On February 21, 2025, the SEC’s Enforcement Division advised RHC in a letter that it had concluded its investigation and did not intend to move forward with an enforcement action," the company said.
The company received a Wells notice from the SEC indicating that it would recommend pursuing an enforcement action in May. A Wells notice is a formal announcement from the regulator saying it believes it has evidence that the recipient — Robinhood, in this case — broke the law.
"As we explained to the SEC, any case against Robinhood Crypto would have failed. 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,” said Dan Gallagher, Robinhood's chief legal, compliance and corporate affairs officer, in a statement.
The SEC is also poised to drop its case against crypto exchange Coinbase and has dropped its investigation into non-fungible token platform OpenSea.
An SEC spokesperson declined to comment.
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Fintech and Crypto Firms Seek Bank Charters Under Trump Administration: Reuters
Financial technology and crypto firms are increasingly applying for state or national bank charters, despite the community’s historical resistance to centralized banking.
Ano ang dapat malaman:
- Fintech and crypto firms are increasingly applying for bank charters, anticipating a more favorable regulatory landscape.
- Becoming a bank allows firms to accept deposits and lower borrowing costs but brings stricter oversight.
- Regulatory bodies have historically approved few new bank charters, though recent signals suggest a more streamlined process.
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