The U.S. Securities and Exchange Commission (SEC) has closed its investigation into Robinhood Crypto, informing the company on February 21 that no enforcement action would be recommended. This decision comes less than a year after Robinhood received a Wells notice regarding potential securities violations.
Robinhood Markets’ compliance officer, Dan Gallagher, criticized the investigation, stating that the company has always adhered to federal securities laws. The SEC had been examining Robinhood’s crypto operations since issuing the Wells notice in May 2024, which suggested possible enforcement action.
In January 2025, Robinhood reached a $45 million settlement with the SEC over multiple securities law violations. The company admitted to some findings in the SEC’s order but has since urged regulators to move away from a “regulation by enforcement” approach.
This development reflects a broader shift in the SEC’s stance on crypto regulation, with growing calls for clearer guidelines. Some experts speculate that pending enforcement actions against other major crypto firms could also be reconsidered. Read more.
