US securities regulator closes investigation into Robinhood's crypto arm with no action
The logo of Robinhood Markets, Inc. is seen at a pop-up event on Wall Street after the company's IPO in New York City, U.S., July 29, 2021. REUTERS/Andrew Kelly/File Photo
Robinhood said the U.S. securities regulator had closed its probe into the retail trading firm's crypto arm with no action, as it seeks to revamp policing of digital assets since President Donald Trump took office.
The U.S. Securities and Exchange Commission has moved to ease its crypto-related regulations under Trump's leadership. It has established a task force to focus on clarifying the regulatory framework around crypto assets and rescinded a key accounting guidance.
Robinhood in May last year received a so-called "Wells notice", which is issued when the SEC is planning to bring enforcement action against a company, over crypto tokens traded on its platform.
A spokesperson for the SEC declined to comment.
"The recent closure of investigations into Robinhood and Coinbase by the SEC is a promising development for the crypto industry. It suggests a shift towards clearer regulatory guidelines, moving away from the previous approach of regulation by enforcement," said Scott Acheychek, COO of REX Financial.
"For Robinhood, this development is likely to boost investor confidence and support its continued expansion in the crypto market," he added.
Robinhood earlier this month beat fourth-quarter profit estimates, helped by a surge in equity, options and crypto trading on its platform following Trump's return to the White House.
