The U.S. Securities and Exchange Commission (SEC) has officially closed its investigation into Robinhood Crypto (HOOD), informing the company on Feb. 21 that no enforcement action would be recommended, according to Robinhood’s Feb. 24 announcement. The decision comes less than a year after the SEC issued Robinhood a Wells notice. This signaled potential enforcement over alleged securities violations.
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Robinhood’s compliance and corporate affairs officer Dan Gallagher did not hold back in his response, stating, “This investigation never should have been opened.” He emphasized that Robinhood Crypto has always complied with federal securities laws and never allowed securities transactions on its platform.
SEC Appears to Be Shifting Its Approach to Crypto
The SEC’s decision to drop the case comes amid broader changes in its stance toward cryptocurrency regulation. Under President Donald Trump’s new administration, the SEC has launched a Crypto Task Force, now led by pro-crypto Commissioner Hester Peirce, who has vowed to clean up the “mess” left by former SEC chair Gary Gensler.
Former SEC official John Reed Stark has speculated that other enforcement actions against major crypto firms, including Coinbase (COIN), Binance, and Ripple (XRP-USD), may soon be withdrawn. He pointed to the SEC’s recent request for a 28-day extension in its lawsuit against Coinbase as a sign that regulatory priorities are shifting.
Is HOOD a Good Stock to Buy?
Analysts are cautiously bullish about HOOD stock, with a Moderate Buy consensus rating based on 11 Buys. Over the past year, HOOD has increased by more than 275%, and the average HOOD price target of $71.27 implies an upside potential of 45% from current levels.
