The US Securities and Exchange Commission (SEC) has closed its investigation into Robinhood's crypto unit, opting not to pursue any action, the company announced on Monday. This decision comes on the heels of a similar move by the SEC regarding Coinbase, which was announced on Friday.

The SEC, under the leadership of former chair Gary Gensler, had been investigating several crypto exchanges, including Robinhood and Coinbase, over their handling of crypto assets such as staking. Staking involves committing crypto assets to support blockchain networks, with the potential to earn more crypto as a reward. Gensler's SEC viewed staking as a security, alleging that exchanges offering this service were trading in unregistered securities.

However, the exchanges disagreed with this assessment, arguing that the SEC and legislators had not established clear crypto regulations to justify such enforcement actions. Coinbase, which was sued by the SEC, opted to fight the allegations, while Robinhood chose to avoid trading the crypto assets that seemed to trigger the SEC's scrutiny. Despite this, Robinhood did launch a staking service in Europe.

In May, Robinhood received a Wells Notice from the SEC, indicating that a lawsuit was pending. However, with the closure of the investigation, no action will be taken against the company. This development is seen as a positive step for the crypto industry, which has been seeking clarity on regulations.

The crypto industry, including exchanges like Coinbase and Robinhood, is now pushing for the creation of regulations under the newly crypto-friendly Trump administration. The industry has faced its share of challenges, including "buyer beware" issues, and it remains to be seen whether it will adopt common-sense regulations or revert to a "Wild West" era.

The closure of the SEC's investigation into Robinhood's crypto unit is a significant development, as it signals a shift in the regulatory landscape for crypto exchanges. With the industry seeking to establish clear guidelines, this move could pave the way for greater adoption and growth in the crypto space.

As the crypto industry continues to evolve, it will be important to monitor the development of regulations and their impact on exchanges like Robinhood and Coinbase. With the SEC's decision, the industry has been given a reprieve, but it remains to be seen how it will respond to the opportunity to create a more regulated and sustainable environment.