Robinhood says the Securities and Exchange Commission is ditching its investigation into the trading app's crypto arm.
The news comes days after it emerged the SEC has also agreed to drop its case against Coinbase as resets its relationship with the crypto industry in the wake of Donald Trump's arrival in the White House.
Last May, Robinhood said it had received a Wells notice from the SEC, indicating that the US regulator is set to take enforcement action. The watchdog had previously issued subpoenas related to the company's cryptocurrency listings, custody and platform operations.
However, with Trump in office and the SEC under new leadership, regulators are reassessing their approach to the crypto industry and specifically the classification of tokens as securities.
In a blog, Robinhood now says it has been told the SEC has "concluded its investigation and did not intend to move forward with an enforcement action".
Dan Gallagher, chief legal, compliance and corporate affairs officer, Robinhood Markets, says: “Let me be crystal clear—this investigation never should have been opened. Robinhood Crypto always has and will always respect federal securities laws and never allowed transactions in securities.
"As we explained to the SEC, any case against Robinhood Crypto would have failed. We appreciate the formal closing of this investigation, and we are happy to see a return to the rule of law and commitment to fairness at the SEC.”