Good news for Robinhood Crypto: the U.S. Securities and Exchange Commission has wrapped up its investigation into the trading platform and decided to take “no action,” the company announced in a statement.

Robinhood Crypto stated that the SEC’s Enforcement Division informed them of the investigation’s close, confirming they “did not intend to move forward with an enforcement action.” This follows a Wells Notice sent in May 2024, which had initially alerted the company to a possible enforcement action.

When asked for comment, an SEC spokesperson told Decrypt that they wouldn’t be commenting on this particular matter.

Dan Gallagher, Robinhood Markets’ head of legal and compliance, didn’t hold back in his statement, saying that “this investigation should never have been started in the first place.” He emphasized that Robinhood “never allowed transactions in securities.”

Robinhood’s statement further urged the SEC to shift away from “regulation by enforcement” and instead focus on “regulation by regulation.” They believe the industry needs clarity and a clear regulatory framework for digital assets.

Interestingly, Gallagher’s name had previously been mentioned as a potential replacement for former SEC Chair Gary Gensler. However, he quickly shut down any speculation.

Gallagher told Decrypt in a statement, “It’s always an honor to be considered for such a vital role as SEC Chairman. But, I’ve made it clear that I’m not seeking this position.”

This outcome for Robinhood mirrors a recent trend of SEC investigations concluding without action in the crypto space. Just last Friday, the SEC also ended its investigation into the NFT marketplace OpenSea, and that came only hours after reaching a preliminary agreement to drop charges against crypto exchange Coinbase.

Since Donald Trump’s inauguration as U.S. President, we’ve seen a shift in the SEC’s approach to crypto. They’ve established a new task force under crypto-friendly commissioner Hester Peirce and even rescinded Staff Accounting Bulletin (SAB) No. 121, which many critics felt unnecessarily complicated things for crypto platforms.

This dismissed investigation seems to align with President Trump’s campaign promises to take a more positive stance on crypto regulation. He had criticized the previous administration’s “regulation-by-enforcement” strategy under Gary Gensler, the former SEC Chair.

Investors seemed to react positively to the news, with Robinhood shares experiencing a slight uptick of 2.4% in premarket trading according to Yahoo Finance. This followed a Friday close that was down 7.9% from the opening price.

Crypto is playing an increasingly larger role in Robinhood’s business. In fact, crypto trading accounted for nearly half of their $672 million in transaction-based revenue in the fourth quarter. This incredible 700% jump came as Bitcoin‘s price surged past $100,000, coinciding with Trump’s election victory.