In a significant development for the cryptocurrency industry, the Securities and Exchange Commission (SEC) has dismissed its enforcement cases against Robinhood and Coinbase. This move marks an early indication of the regulatory shift promised by President Donald Trump, signaling potential easing of restrictions on crypto businesses. The decision has already influenced market dynamics, with Robinhood's shares gaining 38% in 2025 and Bitcoin experiencing a historic rally towards $100,000.
The SEC's previous regulation-by-enforcement approach was widely criticized, especially under the leadership of Gary Gensler. This method was regarded as a low point by many in the crypto sector, who felt targeted despite adhering to legal frameworks. Notably, Dan Gallagher, Robinhood's chief legal, compliance, and corporate affairs officer, had previously expressed concerns over the targeting of Robinhood by the SEC.
"Robinhood Crypto always has and will always respect federal securities laws and never allowed transactions in securities." – Dan Gallagher, Robinhood's chief legal, compliance and corporate affairs officer.
The dismissal of these cases is seen as a return to a more balanced and fair regulatory environment. Robinhood received a letter from the SEC's Enforcement Division confirming the closure of its investigation into the company's crypto business. This development comes after Robinhood had been subpoenaed regarding its cryptocurrency listings, custody, and platform operations. Additionally, the company had received a notice warning of potential charges for violations within its crypto unit.
Coinbase also benefited from this regulatory shift as the SEC agreed to end its enforcement case against the company. The move is indicative of a broader trend towards more favorable policies for the crypto industry under the current administration. Such policies have been credited with Bitcoin's meteoric rise under the previous administration and are anticipated to continue fostering growth in the sector.
Nearly half of Robinhood's $672 million transaction-based revenue in the fourth quarter came from a 700% increase in revenue tied to crypto trading. This underscores the significance of regulatory clarity for businesses operating in the crypto space. The SEC's decision not to pursue action against Robinhood further solidifies this trajectory.
"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." – Dan Gallagher, Robinhood's chief legal, compliance and corporate affairs officer.