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SEC’s Shocking U-Turn - Robinhood Walks Free as Crypto Wins Big

Divya Thakkar
Divya Thakkar·Feb 26, 2025·1 min read
SEC building exterior, symbolizing regulatory shift as Robinhood crypto investigation closed

In a stunning shift, the U.S. Securities and Exchange Commission (SEC) has abruptly closed its investigation into Robinhood’s cryptocurrency business, signaling what could be the beginning of a regulatory thaw for the crypto industry.

This move comes hot on the heels of the SEC’s recent dismissal of its enforcement case against Coinbase, fueling speculation that the agency is finally easing up on its years-long crackdown.

Could this mark the beginning of a friendlier era for crypto? The timing certainly raises eyebrows—especially with political winds shifting.

President Donald Trump has made no secret of his disdain for heavy financial regulations, and his return to office could bring sweeping changes to agencies like the SEC.

With a crypto-friendly stance gaining momentum among conservatives, is this SEC decision a preview of what’s to come under a more deregulation-focused administration?

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Robinhood had been in the regulatory crosshairs since May 2024 when the SEC warned of potential securities law violations tied to its cryptocurrency listings, custody, and platform operations.

Yet, despite the looming threat of legal action, Robinhood held firm.

“Robinhood Crypto always has and will always respect federal securities laws and never allowed transactions in securities,” asserted Dan Gallagher, the company’s chief legal, compliance, and corporate affairs officer (NBC News).

Meanwhile, Robinhood’s crypto trading has exploded, making up nearly half of its $672 million transaction-based revenue in Q4—a jaw-dropping 700% increase.


Edited by Harshajit Sarmah

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