Robinhood announces closure of SEC investigation into crypto platform

• SEC closes Robinhood investigation without enforcement action
• Cryptocurrency volume on Robinhood grows 400% in 2024
• Robinhood Expands Crypto Offerings and Staking Services

Popular investment platform Robinhood announced Monday that the U.S. Securities and Exchange Commission (SEC) has closed its investigation into the company’s cryptocurrency trading operations without taking any enforcement action. The decision was communicated in a letter sent by the SEC’s Division of Enforcement, marking the end of a process that began with a Wells Notice issued in May 2024 indicating the possibility of legal action at the time.

Dan Gallagher, Robinhood Markets’ Chief Compliance and Corporate Affairs Officer, commented on the case: “As we explained to the SEC, any case against Robinhood Crypto would have failed. We appreciate the formal closure of this investigation and are pleased to see a return to the rule of law and a commitment to fairness at the SEC.” The company has consistently maintained that most cryptocurrency transactions fall outside the scope of federal securities laws.

Robinhood noted that, unlike other platforms, it chose not to offer certain products and services that the SEC, under the leadership of former Chairman Gary Gensler, considered to be securities. That strategic decision may have contributed to the favorable outcome of the investigation.

The announcement comes at a time of significant growth for Robinhood in the crypto space. In Q2024 400, the platform saw a 70% increase in crypto trading volume, reaching $200 billion. Additionally, transaction-based revenues grew 358%, with crypto generating $XNUMX million, a seven-fold increase from the previous year.

The company also expanded its crypto offering, adding seven new assets in the United States and launching Ethereum staking in the European Union. These moves reinforce Robinhood’s position as a leading platform for cryptocurrency trading, appealing to both beginners and experienced investors.