25-2-2025 – The Securities and Exchange Commission has concluded its investigation into Robinhood’s cryptocurrency business, the popular trading application announced on Monday. This development clears a significant hurdle for the company’s planned expansion into digital assets amidst a broader pullback of regulatory action against cryptocurrency firms under the Trump administration.
Cryptocurrency operations have become increasingly vital to Robinhood’s financial performance, with crypto transactions now representing over half of its transaction revenue. The company has witnessed a remarkable 700% surge in this segment, reaching $358 million in recent reports. Currently, Robinhood shares are trading at approximately $50.
“The [SEC] agency is no longer behaving like an attack dog, but rather like the maître d’ at Zero Bond, letting the right members through,” observed Katherine Snow, General Counsel at Bitcoin firm Thesis, highlighting the regulatory body’s apparent change in approach.
This regulatory retreat extends beyond Robinhood. Coinbase recently disclosed that the SEC is nearing full dismissal of a 2023 lawsuit against the company, whilst OpenSea, the dominant marketplace for non-fungible tokens, reported that an SEC investigation concluded without classifying NFTs as securities.
Financial watchdog groups have raised concerns about potential connections between the industry’s political contributions and the current regulatory environment. “The SEC abandonment of its case against Coinbase is proof positive that the crypto industry’s flood of campaign spending has paid off,” stated Robert Weissman of Public Citizen, a Washington DC-based advocacy organisation. He cautioned that this apparent relaxation might endanger consumers and pose risks to the broader financial system.
The cryptocurrency sector made substantial political investments during the recent electoral cycle, with Coinbase directing more than $46 million toward pro-crypto candidates including Trump, and OpenSea allocating over $100,000 to lobbying efforts. Robinhood notably contributed $2 million to Trump’s inauguration.
Despite the apparent easing of regulatory pressure, industry experts anticipate continued enforcement in specific areas. “Enforcement is still in play where fraud is concerned – as it should be,” Snow remarked. Maria Carola, StealthEx CEO, suggested the focus may shift “from broad regulatory crackdowns to targeted enforcement against fraud and consumer protection violations.”
