SEC Dropped Robinhood Investigation & Shares Spiked By 2.5%

The US SEC went against a lot of crypto firms at the time of working with Joe Biden. However, things look drastically different now. The regulatory body has reformed its stance against digital currencies and is looking to ‘right its wrongs’. In one such similar effort, the regulatory body just ceased its investigatory efforts towards a prominent exchange named Robinhood. This was a turning point for the company as the dropping of charges skyrocketed the company’s shares by 2.5%. 

The news of the dropping of charges came from chief legal and compliance officer Dan Gallager on February 24th in a blog post. Robinhood received the news of the dropping of the investigation last Friday. This news marked another major turnaround and win for the crypto industry. However, it is not the first time. At press time, the regulatory body has already dropped charges against companies like Opensea, Coinbase, etc. The body even dropped its charges against Changpeng Zhao.  

The Shift 

Robinhood’s CLO took to social media to share the news. He stated, “Instead of regulation by enforcement, it’s time for the SEC to turn to regulation by regulation”. He even added, “providing market participants with clarity and an appropriate regulatory framework for digital assets.” 

This is a noticeable move taken by the regulatory body to undo what Gary Gensler’s SEC did. At the time of Gensler’s term, approximately 120 complaints were filed against crypto firms. Gensler’s view on crypto shaped most of these complaints. In fact, many of these complaints were “ambiguous and capricious” in nature. As a result, Mark Uyeda is on a spree to change that. 

Therefore, this noticeable shift towards a more crypto-friendly stance is what the SEC needs in order to make it relevant and future-proof.