Robinhood Markets is committed to a major expansion of its crypto activities now that the new, crypto-friendly Trump administration seems to support the policy. This fits in with the company’s strategy to diversify further outside of traditional brokerage services.

More room for crypto in the US

Robinhood has been cautious about crypto in the US for a long time, partly due to the strict regulations under former SEC chairman Gary Gensler. Since 2020, the SEC has imposed several fines and threatened to sue the company for possible violations of securities laws. On Monday, Robinhood announced that the SEC has stopped its investigation and will not take any enforcement measures.

With the appointment of Paul Atkins, a crypto fan, as the new SEC chairman, Robinhood wants to scale up faster. “Currently, there is an innovation-friendly attitude towards crypto, and that will certainly help us,” said CFO Jason Warnick. “We want our crypto division to be as big as possible worldwide, and as fast as we can do it responsibly.”

Strong growth

Robinhood has already benefited from the rise in the crypto market since Trump’s election. In the fourth quarter of 2024, crypto trading generated $358 million in revenue, more than half of the total transaction-related revenue. The trading volume in crypto increased from $14 billion to $71 billion in the same period.

In Europe, Robinhood is moving faster, thanks in part to clearer regulations. European customers can earn interest on their crypto and trade in a wider range of digital assets than in the US. “In the US, we should be able to innovate faster. We are optimistic that we can gain ground here again,” Warnick says.

The SEC closing its investigation into Robinhood Crypto is a win for justice and the rule of law. Now, it’s time to focus on pro-innovation policies that unlock the full potential of digital assets in America. pic.twitter.com/ptKm1qGrsp

— Vlad Tenev (@vladtenev) February 24, 2025

Innovation

One of the most important innovations Robinhood is pursuing is tokenization: the digitization of real assets, such as American shares, on the blockchain. “This could be the future of share trading,” Warnick said. The company wants the SEC to clarify which tokens are classified as securities or commodities and whether American platforms are allowed to tokenize real assets.

Robinhood is also expanding its activities with stablecoins, in part to settle trading transactions outside regular banking hours. The company has founded the Global Dollar Network, which uses its own stablecoin, the USDG. “In time, stablecoins could yield a return, which is not yet standard practice,” Warnick says.

Competition with Coinbase

According to Needham analyst John Todaro, Robinhood is likely to launch a number of new crypto products under Trump and thus compete more directly with Coinbase. “The pressure from the SEC is largely gone,” Todaro said.

Despite these new opportunities, Robinhood will continue to focus on its core activities. The company offers brokerage and retirement accounts, but still lacks services such as custodial and investment funds. “It’s discouraging to see how much we don’t have yet, but there are many opportunities to bring new customers and assets to our platform,” Warnick said.