Robinhood on Monday said the SEC has concluded its investigation into Robinhood’s crypto units and will not pursue action.
This says Coinbase says the SEC filed a lawsuit against it on Friday.
The SEC, former chairman, was considering many crypto exchanges under Crypto Hawk Gary Gensler, about how they handled crypto assets such as staking.
Staking involves committing (or lending) crypto assets to support blockchain networks.
Gensler’s SEC deemed staking as security and claimed that exchanges that provided this service were traded on unregistered securities. The exchange opposed and argued that the SEC and/or lawmakers had not established cryptographic regulations to justify such enforcement actions.
Coinbase, sued by the SEC, chose to fight. Robinhood launched its staking service in Europe, but chose to avoid cryptocurrency trading, which appears to be the most triggering the SEC. The SEC had not filed a lawsuit against Robin Hood, but in May Robin Hood said the SEC had sent a Wells notification.
The crypto industry, particularly the interactions of the Coinbase and Robinhood, say they want to use this moment under the new crypto-friendly Trump administration to create regulations. Certainly, the crypto industry has a problem with parenting for buyers. It has not yet been seen whether the industry will adopt common sense regulations or backslide in another wild west era.
