Lawsuits against cryptocurrency companies have been steadily declining under President Joe Biden’s administration, especially as the regulatory environment during President Donald Trump’s tenure was more favorable toward the crypto sector.
In a recent development, Robinhood has revealed that the Securities and Exchange Commission (SEC) has concluded its investigation into the company and will not move forward with any enforcement actions.
This announcement follows a notification that Robinhood received in May regarding potential enforcement due to the non-registration of certain crypto assets as securities on its platform.
Dan Gallagher, the Chief Legal, Compliance, and Corporate Affairs Officer at Robinhood Markets, emphasized the company’s adherence to federal securities laws in a statement.
He communicated, “Robinhood Crypto has always respected federal securities regulations and has never engaged in transactions involving securities. We explained to the SEC that any potential case against Robinhood Crypto would have been unsuccessful. We are thankful for the formal closure of this inquiry and pleased to witness a commitment to fairness and the rule of law from the SEC.”
While the SEC has yet to comment on this matter, Robinhood’s announcement coincides with Coinbase’s recent disclosure that the SEC has dismissed a case against them, awaiting the commission’s approval—though this decision remains unverified by the SEC itself.
The cryptocurrency sector has made significant political contributions to support Trump and allies who favor crypto-friendly policies, striving to enhance its influence in both politics and traditional financial markets.
Since Trump’s administration, the crypto industry has achieved several preliminary victories, such as the revocation of a specific accounting regulation by the SEC and an executive order that established a task force to evaluate and suggest modifications to crypto regulations. This order also indicated the possibility of forming a strategic government reserve of cryptocurrencies in less than half a year.
Additionally, the SEC has requested a federal court to pause ongoing litigation related to Binance, the leading cryptocurrency exchange globally, as its leadership reconsiders previous enforcement strategies.
In response to these encouraging developments, shares of Robinhood Markets Inc. experienced an uptick of more than 2% before the market opened.
