The Securities and Exchange Commission (SEC) has decided to cease its investigation into Robinhood’s cryptocurrency division, the company disclosed on Monday.

Robinhood announced that it had received a letter from the SEC’s enforcement division on Friday. In a blog post, the company stated that the SEC has concluded its examination of the crypto business without proceeding to any enforcement actions. This update follows the news that Coinbase had also recently reported a similar closure of its own SEC case.

Robinhood’s stock surged more than 1% in premarket trading, although it later pulled back from its earlier highs.

In May 2024, Robinhood was cautioned that it might face charges for possible breaches of securities laws concerning its cryptocurrency operations, following an earlier subpoena related to its crypto listings and custody practices. CEO Dan Gallagher emphasized the company’s efforts to engage positively with the SEC, including a notable attempt to “come in and register.”

“Robinhood Crypto has always adhered to federal securities regulations and has never permitted transactions involving securities,” he stated on Monday. “We are grateful for the formal resolution of this investigation and pleased to see a return to fairness and rule of law at the SEC.”

The SEC has yet to respond to requests for comment.

The termination of investigations into Robinhood and Coinbase signals a possible transformation in regulatory practices for the cryptocurrency sector, a shift that was hinted at by President Donald Trump during his campaign. Despite a significant surge in bitcoin prices during the previous administration, the SEC, under former Chair Gary Gensler, had frequently adopted a regulation-by-enforcement strategy that left many crypto firms feeling constrained by the lack of clear operational guidelines.

In the fourth quarter, nearly half of Robinhood’s $672 million in transaction-based revenue stemmed from an impressive 700% increase in revenue from crypto trading, coinciding with bitcoin’s rise toward $100,000 for the first time, amid optimism for new policies under Trump.

So far in 2025, Robinhood’s shares have increased by 38%.