Latest news about Bitcoin and all cryptocurrencies. Your daily crypto news habit.
Regulators want to know the details of the GameStop short squeeze.
Robinhood CEO Vlad Tenev will reportedly testify before the United States House Financial Services Committee over the firmâs role in the volatile trading of GameStop and other volatile stocks.
According to a report by the American political publication Politico, Tenev is expected to participate in a virtual hearing headed by Representative Maxine Waters (D-Calif.) on Feb. 18. Politicoâs report cited anonymous people familiar with the matter.
Waters officially announced the Financial Services Committeeâs plans to hold a GameStop-related hearing on Feb. 18. Entitled âGame Stopped? Who Wins and Loses When Short Sellers, Social Media, and Retail Investors Collide,â the hearing will focus on recent market volatility issues involving GameStop and other stocks.
âI am concerned about whether or not Robinhood restricted the trading because there was collusion between Robinhood and some of the hedge funds that were involved with this,â Waters reportedly said.
The announcement did not specify what witnesses will participate in the hearing. Robinhood has not officially announced Tenevâs participation so far. The firm did not immediately respond to Cointelegraphâs request for comment.
As previously reported, some U.S. regulators have already drawn attention to Robinhoodâs handling the GameStop short squeeze. On Jan. 29, the U.S. Securities and Exchange Commission hinted that it was looking at Robinhoodâs issues with GameStop, expressing concern over âextreme price volatility of certain stocksâ trading prices.â
Robinhoodâs GameStop saga started on Jan. 28 when the company suspended buying for GameStop stock and other shares that were allegedly pumped through the r/Wallstreetbets Reddit community. Robinhood subsequently restricted trading for as many as 50 stocks on Friday before narrowing the restrictions to eight stocks on Feb. 8. Still, Robinhood users are limited to just one GameStop share.
On Feb. 1, Robinhoodâs Tenev discussed the firmâs move to restrict trading with Elon Musk on the audio chat app Clubhouse. Tenev reportedly said that the decision about restrictions was made by a clearinghouse and was based on the capital requirements. He also denied allegations that trading firm Citadel Securities â the largest market maker in options in the U.S. â had pushed the firm to impose the limits.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.