The U.S. Securities and Exchange Commission (SEC) has suspended its investigation into Robinhood (HOOD.US) regarding crypto, signaling a potential easing of crypto regulations.

The U.S. Securities and Exchange Commission (SEC) announced on Monday that it would end its investigation of Robinhood's crypto division and would not take further enforcement action against the brokerage. Robinhood revealed on Friday that it had received a letter from the SEC's enforcement division stating that the investigation into its crypto business was over and that no further enforcement action was intended, following Coinbase's announcement three days earlier that the SEC had agreed to end its enforcement case against the cryptocurrency exchange.

Robinhood received a notice in May 2024 that its crypto division could face charges for violating securities laws, after the company had received subpoenas over issues including the listing, custody and operation of its platform. At the time, Robinhood's chief legal, compliance and corporate affairs officer, Dan Gallagher, said: "Despite our sincere efforts over the years to work with the SEC to obtain regulatory clarity, including our well-known 'come in and register' efforts."

Dan Gallagher emphasized in Monday's statement: "Robinhood Crypto has always respected federal securities laws and never allowed trading of securities. We welcome the formal end of this investigation and are pleased to see the SEC return to the rule of law and commitment to fairness."

The SEC's rejection of the lawsuits against Robinhood and Coinbase was seen as an early sign of the regulatory changes promised by former President Donald Trump during his campaign. Many cryptocurrency companies had seen the low point of the industry under the previous administration, which took a tough enforcement approach to the sector under then-chair Gary Gensler, rather than creating clear operating rules.

As the Trump administration was expected to introduce more favourable policies, bitcoin's price rose to $100,000 for the first time. About half of Robinhood's $672 million in trading revenue in the fourth quarter came from revenue related to cryptocurrency trading, which grew by 700%. Robinhood's shares have risen 34% so far this year.