The Securities and Exchange Commission (SEC) closed its investigation into Robinhood Crypto (RHC) without continuing implementing measures. This decision comes in the midst of the committee’s efforts to move away from its previous “application regulation” approach under the new administration adapted to the industry.
Dry closes the crypto of Robinhood Investigation
Robinhood announced on Monday that the United States’s dry application division has closed its 9-month investigation into its cryptographic arm without taking any application measures. In May 2024, the committee staff published a well opinion in Robinhood, indicating that he would recommend that the dry have been to file an action in charge for having pretended to violate the securities law with his American crypto arm.
On February 21, the regulatory agency sent an informing RHC letter of the official conclusion of the survey, adding that it did not intend to move forward with an action in application.
The legal director, compliance and legal affairs of Robinhood, Dan Gallaghers, declared that the investigation “should never have been opened” but applauded the decision of the dry to close it without action.
He said Robinhood Crypto “always has and will always respect federal securities laws and has never authorized titles transactions”, adding that any case against the cryptographic arm of the company would have failed. “We are happy to see a return to the rule of law and a commitment to equity to the dry,” concluded Gallagher.
In a post X, the CEO and co-founder of Robinhood, Vladimir Tenev, described the development of “victory for justice and the rule of law”, he urged the development of pro-innovation policies which “unlock potential of digital assets in America ”.
The era of “regulation by regulation”?
In his declaration, Robinhood argued that his cryptographic arm, unlike other platforms, conforms to the dry despite a long time in disagreement with the argument that most transactions of digital active ingredients fall under federal laws on securities.
Although Robinhood has long been in disagreement with the argument that transactions in most digital assets are subject to federal laws on public action values.
The company has urged the dry to continue to move away from its “application regulation” approach to “regulation by regulation” to provide market participants with “clarity and regulatory framework appropriate for digital assets”.
This development follows the recent rejection by the dry of his trial against Coinbase. As indicated by Bitcoinist, the exchange announced the end of their 20 -month legal battle after the commission revealed its plan to withdraw the dispute.
In 2023, the SEC allegedly alleged that the platform was an unscathed securities exchange, prosecuting it for operating as an unregistered broker and legally selling uncrowded titles thanks to its development program.
However, the agency staff agreed in principle to delete the trial last Friday, with only the approval of the pending dry commissioners. In addition, the Commission and Binance interrupted their legal battle for two months, pending the actions of the working group on the Crypto of the dry, because they could facilitate the resolution of this, and several other cases of crypto.
The Regulatory Agency has also announced the creation of the Oyber and Emerging Technologies (CETU) unit, to protect investors and fight misconduct linked to crypto and artificial intelligence (AL).
Total crypto market capitalization is at $3.04 trillion in the one-week chart. Source: TOTAL on TradingView
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