The US Securities and Trade Fee (SEC) has chosen to dismiss its investigation of Robinhood Crypto
In response to the Robinhood weblog put up, the agency obtained a letter from the SEC on Feb 21, stating that it had concluded its investigation and wouldn’t take any motion. This comes after a Wells Discover from the SEC to Robinhood in Might 2024.
A Wells Discover often means the SEC is contemplating bringing fees towards an organization, however this time, no fees had been filed.
Robinhood’s Chief Authorized Officer, Dan Gallagher, spoke in regards to the ruling. He stated, “We applaud the employees’s resolution to shut this investigation with no motion.”
He acknowledged that there ought to by no means have been an investigation, as Robinhood Crypto has all the time adopted federal securities legal guidelines. He additional identified that Robinhood didn’t enable any tradings in securities on its platform.
Robinhood is considered one of many companies that disagreed with the stance most digital belongings could be handled as securities, nonetheless, the corporate determined to keep away from providing companies that different firms may need supplied.
Gallagher stated any such enforcement motion introduced towards Robinhood Crypto would have failed and thanked the SEC for formally closing the matter. He additional stated that Robinhood would hold following the principles and assist result in a greater and clearer algorithm for digital belongings.
In the meantime, the crypto area has been seeing modifications in the best way regulators method digital belongings. Below President Donald Trump’s administration, the SEC has been reviewing its cryptocurrency laws.
The SEC just lately shaped a dedicated unit to provide clearer tips on crypto. It has additionally taken steps to loosen tight laws, like overturning some accounting guidelines.
The area sees this modification as signal, particularly since Paul Atkins, Trump’s decide for SEC chair, will extra probably push a extra pleasant stance in the direction of crypto. Robinhood’s inventory climbed 3.3% in premarket buying and selling after discovering out that the investigation was dropped.
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