SEC Drops Investigation Into Robinhood After Months of Scrutiny
The U.S. Securities and Exchange Commission (SEC) has decided to end its probe into Robinhood, the popular retail trading platform.
This move comes after the SEC initially issued a Wells Notice to Robinhood in May of the previous year, signaling a potential investigation.
Despite this, Robinhood had claimed that it had been proactive in communicating with the regulator, with CEO Vlad Tenev noting multiple meetings between the company and the SEC, where they were transparent in discussing their plans.
In response to the dropped investigation, Robinhood emphasized the importance of clear regulations rather than regulatory actions based on enforcement.
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Dan Gallagher, Robinhood’s legal chief, expressed relief at the SEC’s decision to close the case without taking any further action. Gallagher asserted that Robinhood’s crypto platform had always adhered to federal securities laws and never allowed any transactions involving securities.
He criticized the initiation of the investigation, stating it should not have happened in the first place, and welcomed the return to a more predictable regulatory environment.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
