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Investing.com -- The U.S. Securities and Exchange Commission (SEC) has officially ended its investigation into Robinhood Crypto (RHC), with no plans to execute an enforcement action. This decision was communicated to RHC in a letter from the SEC’s Enforcement Division on February 21, 2025. This marks the end of an investigation that followed a Wells Notice issued to RHC by the SEC in May 2024.
Dan Gallagher, Chief Legal, Compliance and Corporate Affairs Officer for Robinhood Markets (NASDAQ:HOOD), Inc., expressed satisfaction with the SEC’s decision. Gallagher stated that the investigation should not have been initiated in the first place, asserting that Robinhood Crypto has always complied with federal securities laws and never permitted transactions in securities. He expressed gratitude for the formal closure of the investigation, and welcomed the return to the rule of law and commitment to fairness at the SEC.
Robinhood has consistently disagreed with the notion that transactions in most digital assets fall under federal securities laws. However, RHC has made some tough decisions, choosing not to offer certain products and services that the SEC, under the previous Chair Gensler, claimed were securities in public actions. Robinhood aims to contribute to a more transparent and tailored regulatory environment for digital assets, and is keen on collaborating with the SEC under the new administration to establish a clear path forward.
Robinhood advocates for the SEC to move towards regulation by regulation, rather than regulation by enforcement. This approach would provide market participants with clarity and an appropriate regulatory framework for digital assets. As for Robinhood’s future plans, the company intends to continue its tradition of innovation, developing products and services for its customers.
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