(Reuters) -Robinhood said on Monday the U.S. Securities and Exchange Commission had closed its investigation into the company's crypto trading arm with no action.

Robinhood's shares were up 2.9% in premarket trading.

In May 2024, Robinhood had received a notice warning that it could be charged for a potential violation of securities law within its crypto unit.

The SEC dropped a lawsuit against crypto firm Coinbase last week.

(Reporting by Jaiveer Singh Shekhawat in Bengaluru; Editing by Shreya Biswas)