- Robinhood (HOOD) shares rose 3.30% to $53.28 premarket after the SEC dropped its crypto arm probe, a decision announced Monday that mirrors Coinbase’s recent relief, boosting 2025 gains to 39%.
- The SEC’s closure, detailed in a Friday letter, was lauded by Chief Legal Officer Dan Gallagher as a triumph over an unwarranted investigation, reinforcing Robinhood’s compliance stance amid a 700% Q4 crypto revenue surge to nearly half of $672 million.
- The dismissals signal a regulatory shift under Trump’s influence, easing the SEC’s enforcement grip that hampered crypto despite Bitcoin’s (BTC) rally, potentially freeing Robinhood to capitalize further on digital asset growth.
Robinhood Markets Inc. (HOOD) shares are buzzing, up 3.30% to $53.28 in premarket trading after a Friday close at $51.60 that saw an 8% drop, buoyed by the SEC’s decision to drop its probe into the company’s crypto arm, a move announced Monday that echoes a similar reprieve for Coinbase (COIN) just days prior. The SEC’s Enforcement Division signaled no action in a Friday letter, a victory Robinhood’s Chief Legal Officer Dan Gallagher hailed as a return to fairness, slamming the investigation as baseless given the firm’s steadfast avoidance of securities transactions—a stance he’s held since May 2024 when a warning notice loomed after years of regulatory wrangling. This double dismissal hints at a thawing in the crypto sector’s icy relationship with regulators, a shift teased by President Trump’s campaign promises to ease the SEC’s enforcement-heavy grip under ex-chair Gary Gensler, who’d left the industry bristling despite Bitcoin’s (BTC) climb.
The stakes for Robinhood couldn’t be higher—crypto trading fueled nearly half of its $672 million Q4 transaction revenue, rocketing 700% as Bitcoin neared $100,000, a rally turbocharged by hopes of Trump’s lighter touch, pushing shares up 39% in 2025 so far. Gallagher’s blog post doubles down, spotlighting Robinhood’s fruitless attempts at clarity – like its 2023 bid to register with the SEC – only to face subpoenas over listings and custody, a saga that painted the agency as more foe than guide. Now, with the SEC stepping back, Robinhood’s crypto arm stands vindicated, its compliance-first ethos affirmed, potentially unlocking more room to ride the digital asset wave that’s redefined its revenue mix.
This pivot arrives as the broader crypto market basks in a regulatory glow-up, with Bitcoin’s surge reflecting investor bets on a friendlier Washington—one where enforcement gives way to rules Robinhood can play by. The stock’s premarket lift shrugs off Friday’s stumble, signaling relief that the SEC cloud has lifted, though its 2025 gains – while hefty – mirror a volatile dance with market sentiment and crypto’s fortunes. For a company that’s morphed from a retail trading disruptor to a crypto powerhouse, this reprieve could cement its foothold, letting it lean harder into a Bitcoin boom without the overhang of legal limbo—a win not just for Gallagher’s team but for an industry eyeing a new dawn.
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