The Securities and Exchange Commission (SEC) has officially closed its investigation into Robinhood, the popular trading app. This comes less than a year after the SEC issued a Wells Notice, a formal warning that an investigation was underway.
Robinhood’s Response
Robinhood CEO Vlad Tenev previously stated that the company had met with the SEC numerous times (“in good faith”), claiming over 15 meetings. Despite these efforts, the investigation proceeded. Now, with the charges dropped, Robinhood is urging the SEC to focus on creating clear regulations instead of resorting to enforcement actions first.
Dan Gallagher, Robinhood’s chief legal officer, celebrated the SEC’s decision, stating that the investigation was unwarranted and that Robinhood Crypto has always adhered to federal securities laws. He expressed relief that the investigation is over and hopes for a fairer approach from the SEC in the future.
