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SEC Ends Probe Without Action The U.S. Securities and Exchange Commission (SEC) has closed its investigation into Robinhood Crypto, deciding not to take any enforcement action. Robinhood announced the news on Feb. 24, following a Feb. 21 notice from the SEC’s Enforcement Division.
Dan Gallagher, Robinhood’s compliance and corporate affairs officer, criticized the investigation, stating it “never should have been opened” and reaffirming that Robinhood Crypto follows all securities laws.
Background: SEC Scrutiny and Settlement The SEC had been investigating Robinhood’s crypto operations since issuing a Wells notice in May 2024—a warning that the agency was considering enforcement action. In January 2025, Robinhood settled with the SEC for $45 million over multiple securities law violations, admitting to certain findings in the process.
Push for Clearer Crypto Regulations With the investigation closed, Robinhood urged the SEC to move away from its “regulation by enforcement” approach and instead provide clear rules for digital assets—a position echoed by many in the crypto industry.
SEC’s Changing Stance on Crypto Since President Donald Trump’s administration took office in January 2025, the SEC has shifted its approach. The agency launched a Crypto Task Force led by Commissioner Hester Peirce, a pro-crypto advocate who aims to reform past policies.
Legal experts speculate that other SEC cases against major crypto firms like Coinbase, Binance, and Ripple could also be dropped. Former SEC official John Reed Stark noted that the agency recently requested an extension in its lawsuit against Coinbase, suggesting a possible retreat from aggressive enforcement.
The Crypto Task Force has already met with industry leaders—including Nasdaq and Andreessen Horowitz—to discuss regulatory priorities, with a focus on exchange-traded products and staking rules.
Footnotes:
- Wells notice: A formal notification from the SEC indicating potential enforcement action.
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