Robinhood Becomes Latest Firm To See SEC Drop Crypto Case

Robinhood Markets, the trading platform popular among retail investors, has long sought to expand its presence in cryptocurrency.

Robinhood disclosed that the SEC had closed its investigation without pursuing enforcement action. I Photo: Robinhood

Now, under the more crypto-friendly Trump administration, it has become the second company to see a crypto-related case dropped by the Securities and Exchange Commission (SEC), Barron’s Daily reported.

Robinhood disclosed that the SEC had closed its investigation without pursuing enforcement action, about a year after the company first received a warning from the agency.

While the SEC declined to comment, the decision marks a shift in regulatory approach under SEC Chairman Paul Atkins, a known supporter of the crypto industry.

The agency recently restructured its antifraud unit, launching a new cyber and emerging technologies division. The SEC also abandoned its case against Coinbase Global, which had been accused in 2023 of operating as an unregistered broker.

With regulatory pressure easing, Robinhood is ramping up its crypto offerings, expanding its platform post-election, and considering adding more digital assets in 2025. Additionally, Robinhood is acquiring crypto exchange Bitstamp, a move that will allow it to serve institutional investors.

The deal is expected to close in the first half of this year.

Meanwhile, SEC Commissioner Hester Peirce has called for public input on the agency’s evolving approach to crypto regulation.

MicroStrategy CEO Michael Saylor, a vocal Bitcoin advocate, has also weighed in, recently purchasing 20,356 more Bitcoins and advocating for a strategic Bitcoin reserve in the U.S.