The Securities and Exchange Commission is dropping its investigation into Robinhood’s crypto arm, the company revealed Monday.
Robinhoodblog post that the agency has closed its investigation into the crypto business with no intention of moving forward with an enforcement action. The news comes three days after Coinbase similarly announced that the SEC has agreed to end its enforcement case against it.
Shares of Robinhood initially rose on the news but closed lower by 3.2% amid a broader pullback in stocks from the day’s highs.
In May 2024, Robinhood received a notice warning that it could be charged for potential violation of securities law within its crypto unit after previously being subpoenaed for its cryptocurrency listings, custody and platform operations – despite “years of good faith attempts to work with the SEC for regulatory clarity including our well-known attempt to ‘come in and register,'” Dan Gallagher, the company’s chief legal, compliance and corporate affairs officer, said at the time.
“Robinhood Crypto always has and will always respect federal securities laws and never allowed transactions in securities,” he said in a statement Monday. “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.”
An SEC spokesperson declined to comment for this story.
The SEC’s dismissal of the Robinhood and Coinbase cases is an early sign of the regulatory sea change for the crypto industry promised by President Donald Trump during his election campaign. Despite the meteoric rise of the price of bitcoin
Nearly half of Robinhood’s $672 million transaction-based revenue in the fourth quarter came from a 700% rise in revenue tied to crypto trading, as bitcoin rallied toward $100,000 for the first time ever on hopes of more favorable policies under Trump.
Robinhood shares have gained 34% so far in 2025.
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