Breaking: US SEC Closes Robinhood Case With No Action
Highlights
- The US SEC has closed its investigation into Robinhood, without bringing any action against the exchange.
- Robinhood's CLO applauded this move and stated that the investigation shouldn't have been opened in the first place.
- The exchange also called on the Commission to drop its enforcement approach and adopt a 'regulation by regulation' approach.
In a massive development for the crypto industry, the US Securities and Exchange Commission (SEC) has dropped its case against the Robinhood exchange without any further action. This comes just days after the US SEC agreed to drop the Coinbase lawsuit.
US SEC Drops Robinhood Case With No Action
In a press release, Robinhood announced that the US SEC’s Enforcement Division has closed its investigation and will not pursue an enforcement action. This marks an end to the Robinhood case, which began last year when the top crypto exchange received a Wells Notice from the regulator.
The Enforcement Division informed the exchange in a letter that it had concluded its investigation and did not intend to move forward with an enforcement action.
Commenting on this development, Robinhood’s Chief Legal, Compliance and Corporate Affairs Officer, Dan Gallagher said,
We applaud the staff’s decision to close this investigation with no action. Let me be crystal clear—this 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.”
The close of the Robinhood case comes just days after the US SEC agreed to drop the Coinbase lawsuit, subject to the Commissioners’ approval. Meanwhile, under acting Chair Mark Uyeda, the Commission continues to adopt a more friendly approach to the crypto industry while dropping Gary Gensler’s regulation-by-enforcement approach in the process.
Exchange Offers To Work With SEC
Robinhood also stated that it looks forward to working with the SEC under this new administration to establish a clear path forward in line with its vision to help advance a more transparent and tailored regulatory environment for digital assets.
The top crypto exchange added that instead of regulation by enforcement, the US SEC should turn to regulation by regulation, providing market participants with clarity and an appropriate regulatory framework for digital assets.
With the Commission moving to end its non-fraud cases and enforcement actions, there remain speculations that it could soon withdraw its appeal against Ripple. Legal expert MetaLawMan recently predicted that the Ripple vs. SEC case could end before April 16.
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