In a significant development, the U.S. Securities and Exchange Commission (SEC) has closed its investigation into Robinhood Crypto without pursuing enforcement action.
The decision comes months after the agency issued a Wells Notice to Robinhood Crypto in May 2024, indicating the possibility of legal proceedings. This development marks a notable change in the regulatory stance on crypto-related businesses, with broader implications for the industry.
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SEC Drops Lawsuit Against Coinbase
Just days prior, on February 21, 2025, the SEC agreed to dismiss its lawsuit against Coinbase, one of the largest cryptocurrency exchanges in the U.S. The lawsuit, filed in June 2023, accused Coinbase of operating as an unregistered securities exchange and broker.
Coinbase’s Chief Legal Officer, Paul Grewal, described the dismissal as “nothing short of a complete win” for the company. This move aligns with the SEC’s evolving stance on crypto regulation under the current administration.
Implications for Ripple and the XRP Community
The recent decisions to drop cases against Robinhood and Coinbase have sparked optimism within the XRP community regarding the ongoing lawsuit between the SEC and Ripple Labs.
The SEC’s case against Ripple, initiated in December 2020, alleges that the company conducted an unregistered securities offering by selling XRP tokens. Given the SEC’s recent actions, there is growing speculation that the agency may reconsider its position next in the Ripple case.
Industry experts suggest these developments could lead to a more favorable regulatory environment for digital asset businesses.
Community Reactions
The crypto community has been actively discussing these regulatory shifts on social media platforms. Cardano creator Charles Hoskinson commented on the SEC’s decision to drop the Coinbase lawsuit, stating that “healing has begun” within the crypto industry.
Similarly, members of the XRP community have expressed hope that the Ripple lawsuit may soon reach a positive resolution, potentially setting a precedent for future regulatory clarity in the sector.
These recent actions by the SEC suggest a broader reevaluation of its regulatory approach toward cryptocurrency platforms, potentially leading to increased innovation and growth within the industry.
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