The primary securities regulator in the United States has ceased its inquiries into the prominent retail trading platform Robinhood. As per a recent statement from Robinhood, the U.S. Securities and Exchange Commission (SEC) has decided to discontinue its investigation into the trading app, less than a year after issuing a Wells Notice to the company.
Last year, the SEC issued Robinhood a Wells Notice, indicating a formal investigation, despite Robinhood CEO Vlad Tenev’s assertions that the company had met with the regulator more than 15 times “in good faith.” Now that the charges have been dropped, Robinhood is urging the SEC to focus on regulatory measures rather than enforcement actions. Dan Gallagher, Robinhood’s chief legal, compliance, and corporate affairs officer, commended the SEC’s choice to close the investigation without taking any action, emphasizing that the investigation should never have been initiated. Robinhood Crypto has always adhered to federal securities laws and has never engaged in securities transactions. The company expressed gratitude for the investigation’s formal closure and welcomed a return to adherence to the rule of law and fairness at the SEC.
