From by Ledger Insights
Today Robinhood announced that Robinhood Crypto was notified by the Securities and Exchange Commission (SEC) that the SEC would not be taking enforcement action. This follows the SEC issuing a Wells Notice last year warning of impending legal action relating to crypto custody, cryptocurrency listings and platform operations.
Under acting SEC Chair Mark Uyeda, several crypto related cases have been dropped or paused. It recently dropped the investigation into NFT platform OpenSea and on Friday Coinbase said its SEC court case would end, subject to Commissioner approval. Earlier this month the SEC paused its case against Binance.
Plus it withdrew its appeal in its attempt to expand the definition of brokers to include liquidity providers.
Back to Robinhood, “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.” Mr Gallagher is himself a former SEC Commissioner.
The announcement highlighted that Robinhood Crypto had been careful in its approach, only listing 18 cryptocurrencies after thorough due diligence, as opposed to the hundreds listed by other platforms.