The U.S. Securities and Exchange Commission (SEC) has dropped its lawsuit against Robinhood Crypto, the cryptocurrency unit of the popular financial services company.
The agency does not intend to move forward with an enforcement action following the investigation.
Robinhood CEO Dan Gallagher has applauded the SEC's decision to drop the probe into the company, adding that it should have never been opened in the first place.
"The SEC closing its investigation into Robinhood Crypto is a win for justice and the rule of law. Now, it’s time to focus on pro-innovation policies that unlock the full potential of digital assets in America," Gallagher said on the X social media network.
Yuri MolchanThe shares of Robinhood (HOOD) are up by nearly 2% in pre-market trading after plunging by nearly 8% on Friday.
As reported by U.Today, Robinhood originally received a Wells notice from the SEC back in May 2024.
The shares of Robinhood have experienced a rather underwhelming uptick due to the fact that such a move was likely priced in by the market given the crypto-friendliness of the new SEC administration.
Last week, the SEC also dropped the Coinbase lawsuit, a move that was widely celebrated by the cryptocurrency industry. Notably, the leading US cryptocurrency exchange did not get even a slap on the wrist after engaging in a yearslong battle with the agency. The SEC ditched the case without any fines or charges.
The SEC is widely expected to suspend or drop all non-fraud cryptocurrency cases after gutting its cryptocurrency enforcement unit and demoting chief litigator Jorge Tenreiro.
Vladislav Sopov
Dan Burgin