SEC Drops Robinhood Crypto Investigation

CRYPTO
SEC Drops Robinhood Crypto Investigation

Robinhood announced that the Securities and Exchange Commission (SEC) has officially closed its investigation into the company’s crypto business. The brokerage learned of the decision on Friday, marking a significant shift in the SEC’s approach under President Donald Trump’s administration.

Dan Gallagher, Robinhood’s chief legal officer, criticized the original probe, stating, “This investigation never should have been opened.” He emphasized that Robinhood Crypto complies with federal securities laws and has never facilitated transactions involving securities.

Previously, in May 2024, the SEC had threatened a lawsuit, arguing that some cryptocurrencies listed on Robinhood’s platform were unregistered securities. The agency has now dropped the case without explanation.

The SEC has recently softened its stance on crypto, halting litigation against Binance, Coinbase, and OpenSea. Acting SEC Chair Mark Uyeda has restructured the agency’s enforcement division, shifting its focus from crypto crackdowns to cyber fraud, signaling a more lenient regulatory era for digital assets.

TECH
Anthropic Raises $3.5B, Valuation Soars

AI startup Anthropic is in talks to raise $3.5 billion in a new funding round, pushing its valuation to $61.5 billion, nearly three times its previous worth. Lightspeed Venture Partners is leading the round, with participation from General Catalyst and others, according to sources.

Originally, Anthropic aimed to raise $2 billion, but strong investor demand has significantly increased expectations. The funding, first reported by The Wall Street Journal, highlights continued enthusiasm for top-tier AI companies, even as competition intensifies with China’s DeepSeek.

Anthropic, backed by Amazon and Google, was last valued at $18 billion, with Amazon investing $8 billion in the company. The startup, founded by former OpenAI employees, is best known for Claude, its advanced AI chatbot. Earlier Monday, Anthropic unveiled its most intelligent AI model yet, featuring a hybrid reasoning system designed for greater accuracy and complex problem-solving. The company declined to comment on the funding discussions.

TECH
AI Strengthens Palantir’s Long-Term Outlook

Palantir’s stock has dropped 25% in the past week, including a 10% decline on Monday, following Pentagon spending cuts that raised concerns about its reliance on government contracts. Despite this, analysts remain bullish on the company’s long-term potential, highlighting its AI-driven efficiencies and expanding commercial business.

Palantir’s stock is still up 500% since early 2024, despite its high valuation of 475 times earnings, far exceeding the Nasdaq average of 29 times earnings. CEO Alex Karp has sold $2 billion in stock, while continuing to push for a stronger Silicon Valley-national security alliance.

Analysts believe Palantir’s AI solutions align with the government’s need to reduce costs, particularly under the DOGE initiative. While short-term risks remain due to delayed contract approvals, Bank of America sees a 40% upside, projecting a $125 price target and calling Palantir a potential buy-the-dip opportunity for long-term investors.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.