Outside Source
The investigation was dropped more than a month after Robinhood and the SEC reached a $45 million settlement.
Breaking news
The United States Securities and Exchange Commission has closed its investigation into Robinhood Crypto less than a year after issuing the online brokerage a Wells notice.
The SEC’s Enforcement Division informed Robinhood on Feb. 21 that it had concluded its investigation and would not recommend any enforcement action against the platform. Robinhood disclosed this information in a Feb. 24 announcement.
“[T]his investigation never should have been opened,” said Dan Gallagher, Robinhood Markets’ compliance and corporate affairs officer. “Robinhood Crypto always has and will always respect federal securities laws and never allowed transactions in securities.”
Securities regulators had been investigating Robinhood’s cryptocurrency operations for the better part of a year. As Cointelegraph reported, Robinhood’s US-based crypto business was subject to an SEC Wells notice on May 4. At the time, the SEC made the “preliminary determination” to recommend enforcement actions tied to alleged securities violations.
Robinhood urged the SEC to drop its “regulation by enforcement” posture and provide the industry with clearer guidelines for digital assets — a view that’s widely shared by market participants.
This is a developing story, and further information will be added as it becomes available.
This article first appeared at Cointelegraph.com News
