After Preparing To Drop Coinbase Enforcement Case, SEC Closes Investigation Into Robinhood Crypto: Retail’s Elated

In what can be seen as the first steps of crypto-friendly regulations under the Trump administration, the Securities and Exchange Commission (SEC) has officially closed its investigation into Robinhood Crypto (RHC). The development comes within days of the regulator closing its enforcement case against Coinbase.

Robinhood said in a blog post that on Feb. 21, 2025, the SEC’s Enforcement Division advised RHC in a letter that it had concluded its investigation and did not intend to proceed with an enforcement action.  

Robinhood said that RHC made difficult choices not to provide certain products and services that the SEC, under previous Chair Gary Gensler, alleged are securities in public actions.

“We’re helping advance a more transparent and tailored regulatory environment for digital assets, and look forward to working with the SEC under this new administration to establish a clear path forward,” the company said in a statement.

Dan Gallagher, Chief Legal, Compliance and Corporate Affairs Officer, Robinhood Markets asserted that the investigation never should have been opened.

“Robinhood Crypto always has and will always respect federal securities laws and never allowed transactions in securities. As we explained to the SEC, any case against Robinhood Crypto would have failed. We appreciate the formal closing of this investigation, and we are happy to see a return to the rule of law and commitment to fairness at the SEC,” Gallagher said.

Last year, RHC received a Wells Notice from the SEC indicating that they would recommend filing an enforcement action.

On Friday, Coinbase said it had reached an in-principle agreement with the SEC to drop the ongoing litigation, subject to the commissioners' approval. Once the deal is approved by the Commission, which is expected this week, it will be a complete dismissal and carry no fines.

The closing of the cases is a big positive for cryptocurrencies, which witnessed a surge under the Biden administration but was always overshadowed by the SEC’s tough stance.

Following the development, retail sentiment surrounding HOOD continued to trend in the ‘bullish’ territory (74/100), accompanied by ‘high’ message volume.

Stocktwits followers of the ticker cheered the news.

Robinhood shares gained over 3% in Monday’s pre-market trading. The stock has gained over 30% in 2025 and almost 231% over the past year.

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