Robinhood Markets Inc (NASDAQ:HOOD) said the Securities and Exchange Commission (SEC) has concluded its investigation into the trading platform’s cryptocurrency division and has chosen not to pursue any enforcement actions.
The company said it had received a letter from the SEC on Friday advising it of its decision.
In May 2024, the SEC advised Robinhood it was investigating whether certain crypto assets listed on its platform should be registered as securities. Robinhood maintained that it had always respected federal securities laws and never facilitated transactions involving securities.
“We applaud the staff’s decision to close this investigation with no action,” said Dan Gallagher, chief legal, compliance and corporate affairs officer at Robinhood in a blog post on Monday.
“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,” Gallagher said.
Robinhood shares initially rose on the news but reversed course, trading down 4.3% at about $49 late afternoon on Monday.