On Monday, Robinhood announced that the U.S. Securities and Exchange Commission (SEC) ended its investigation of the company's crypto business, paving the way for one of America’s most popular trading apps to expand its push into the crypto space as the Trump administration dramatically scales back lawsuits against crypto firms.

Robinhood, which donated $2 million to Trump's inauguration, is currently trading at around $50 per share.

As the Trump administration eases regulatory pressure on crypto firms, Robinhood is looking to expand its presence in the digital asset space. Robinhood's crypto trades now make up more than half of its transaction revenue, and recently soared to $358 million — marking a dramatic 700% increase for the company.

“The SEC is dropping lawsuits against crypto companies left, right, and center,” Charles Wayn, co-founder of decentralized super app Galxe, told TheStreet Crypto. “First Coinbase, now Robinhood and OpenSea — it’s like a completely different agency.”

On Friday, Coinbase announced the financial regulator was close to fully dismissing a 2023 lawsuit against the company. OpenSea, the world's largest marketplace for non-fungible tokens (NFTs), also recently said that the SEC's investigation into the firm was closing without categorizing NFTs as securities.

The crypto industry contributed millions to Trump’s 2024 presidential bid, leading industry groups to question if donations influenced the current regulatory shift: “The SEC abandonment of its case against Coinbase is proof positive that the crypto industry’s flood of campaign spending has paid off,” said Robert Weissman, co-president of D.C.-based watchdog group Public Citizen.

“[This] is a massive gift to the industry, which can only be understood in light of its massive political spending in the last election,” Weissman said, adding that the SEC’s seemingly lax stance might place “consumers at risk” and pose a threat to the “overall financial system.”

Last year, Coinbase's spending on pro-crypto candidates like Trump exceeded $46 million, while OpenSea spent more than $100,000 lobbying during the 2024 elections.

However, the crypto industry still expects enforcement actions against firms to continue. "Enforcement is still in play where fraud is concerned – as it should be – but the [SEC] agency is no longer behaving like an attack dog, but rather like the maître d' at Zero Bond, letting the right members through," said Katherine Snow, General Counsel at Bitcoin firm Thesis.

“This does not imply full freedom for crypto companies, as the focus is likely to pivot from broad regulatory crackdowns to targeted enforcement against fraud and consumer protection violations,” StealthEx CEO Maria Carola told TheStreet Crypto.

As the Trump administration decreases litigation for crypto firms, the sector is still waiting for regulatory clarity on how crypto will be legally categorized and which agency will regulate digital assets: “While dismissals of cases or investigations may be quick now, the hard work in solidifying clarity will take time,” Cathy Yoon, Wormhole Foundation's General Counsel, told TheStreet Crypto.