The Security and Exchange Commission (SEC) has closed its investigation into Robinhood Crypto, a major shift in the SEC’s approach under the Trump administration.

Robinhood announced in a blog post that it had received a letter from the SEC, informing the company that the agency had closed its investigation.

The U.S. Securities and Exchange Commission (SEC) has officially closed its investigation into Robinhood Crypto (RHC). On February 21, 2025, the SEC’s Enforcement Division advised RHC in a letter that it had concluded its investigation and did not intend to move forward with an enforcement action. This follows the SEC’s May 2024 Wells Notice to RHC.

“We applaud the staff’s decision to close this investigation with no action,” said Dan Gallagher, Chief Legal, Compliance and Corporate Affairs Officer, Robinhood Markets, Inc. “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.”

Robinhood also called on the SEC to provide clear regulation for the crypto market, rather than relying on enforcement actions to achieve that regulation.

While Robinhood has long disagreed with the argument that transactions in most digital assets are subject to the federal securities laws, RHC, as opposed to other platforms, made difficult choices not to provide certain products and services that the SEC under previous Chair Gensler alleged are securities in public actions. We’re helping advance a more transparent and tailored regulatory environment for digital assets, and look forward to working with the SEC under this new administration to establish a clear path forward.

Instead of regulation by enforcement, it’s time for the SEC to turn to regulation by regulation – providing market participants with clarity and an appropriate regulatory framework for digital assets. And as for Robinhood, we’ll continue on as we’ve always done: innovating with products and services for our customers.

Under former SEC Chair Gary Gensler, the agency launched multiple actions against various crypto companies and exchanges. Gensler made clear on multiple occasions that he was no fan of cryptocurrency, and the SEC’s actions reflected his view.

To make matters worse, the regulation governing the crypto market was either lacking or unclear, meaning that many companies had no idea they were at risk until the SEC went after them. In view of that past, it’s little wonder that Robinhood is calling on the agency to provide clear regulation for companies to work within.