The SEC will not to sue Robinhood over crypto

Core Insights - The SEC has closed its investigation into Robinhood's crypto unit and will not pursue action, following a similar decision regarding Coinbase [1] - The SEC, under former chair Gary Gensler, had been investigating crypto exchanges for their treatment of crypto assets, particularly in relation to staking [1][2] - Staking is viewed by the SEC as a security, leading to allegations that exchanges providing this service were trading in unregistered securities [2] - Coinbase chose to contest the SEC's lawsuit, while Robinhood opted to avoid trading certain crypto assets that triggered SEC scrutiny, although it did launch a staking service in Europe [3] - The crypto industry, including exchanges like Coinbase and Robinhood, aims to leverage the current regulatory environment to establish clearer regulations [4] Group 1 - The SEC has closed its investigation into Robinhood's crypto unit and will not pursue action [1] - Coinbase's lawsuit from the SEC has also been dropped [1] - The SEC was investigating how exchanges treated crypto assets, particularly regarding staking [1][2] Group 2 - Staking involves committing crypto assets to support blockchain networks, with potential rewards [2] - The SEC views staking as a security and has alleged that exchanges providing this service are trading in unregistered securities [2] - Exchanges argue that the SEC has not established clear regulations to justify enforcement actions [2] Group 3 - Coinbase opted to fight the SEC lawsuit, while Robinhood avoided trading certain crypto assets under scrutiny [3] - Robinhood received a Wells Notice from the SEC, indicating a potential lawsuit was pending [3] - The crypto industry seeks to create regulations under a newly crypto-friendly administration [4]