Robinhood Announces the SEC’s Enforcement Division has Closed Its Investigation and Will Not Pursue an Enforcement Action

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 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.”

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.  

Cautionary Note Regarding Forward-Looking Statements

This blog post contains forward-looking statements, regarding the status of the SEC’s investigation of RHC, including statements regarding efforts  to help advance a more transparent and tailored regulatory environment for digital assets and the possibility of working with the SEC under this new administration to establish a clear path forward. Our forward-looking statements are subject to a number of known and unknown risks, uncertainties, assumptions, and other factors that may cause our actual future results, performance, or achievements to differ materially from any future results expressed or implied in this announcement. Because some of these risks and uncertainties cannot be predicted or quantified and some are beyond our control, you should not rely on our forward-looking statements as predictions of future events. More information about potential risks and uncertainties that could affect our business and financial results is included in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2024 as well as our other filings with the SEC, which are available on the SEC’s web site at www.sec.gov. Except as otherwise noted, all forward-looking statements are made as of the date of this announcement and are based on information and estimates available to us at this time. Except as required by law, we assume no obligation to update any of the statements in this announcement whether as a result of any new information, future events, changed circumstances, or otherwise. You should read this announcement with the understanding that our actual future results, performance, events, and circumstances might be materially different from what we expect.