Robinhood CEO Vlad Tenev will reportedly testify earlier than the US Home Monetary Companies Committee over the agency’s function within the risky
Robinhood CEO Vlad Tenev will reportedly testify earlier than the US Home Monetary Companies Committee over the agency’s function within the risky buying and selling of GameStop and different risky shares.
In response to a report by the American political publication Politico, Tenev is anticipated to take part in a digital listening to headed by Consultant Maxine Waters (D-Calif.) on Feb. 18. Politico’s report cited nameless individuals accustomed to the matter.
Waters formally introduced the Monetary Companies Committee’s plans to carry a GameStop-related listening to on Feb. 18. Entitled “Recreation Stopped? Who Wins and Loses When Quick Sellers, Social Media, and Retail Buyers Collide,” the listening to will give attention to current market volatility points involving GameStop and different shares.
“I’m involved about whether or not or not Robinhood restricted the buying and selling as a result of there was collusion between Robinhood and a few of the hedge funds that have been concerned with this,” Waters reportedly mentioned.
The announcement didn’t specify what witnesses will take part within the listening to. Robinhood has not formally introduced Tenev’s participation thus far. The agency didn’t instantly reply to Cointelegraph’s request for remark.
As beforehand reported, some U.S. regulators have already drawn consideration to Robinhood’s dealing with the GameStop quick squeeze. On Jan. 29, the U.S. Securities and Trade Fee hinted that it was taking a look at Robinhood’s points with GameStop, expressing concern over “excessive value volatility of sure shares’ buying and selling costs.”
Robinhood’s GameStop saga began on Jan. 28 when the corporate suspended shopping for for GameStop inventory and different shares that have been allegedly pumped by the r/Wallstreetbets Reddit group. Robinhood subsequently restricted buying and selling for as many as 50 shares on Friday earlier than narrowing the restrictions to eight shares on Feb. 8. Nonetheless, Robinhood customers are restricted to only one GameStop share.
On Feb. 1, Robinhood’s Tenev mentioned the agency’s transfer to limit buying and selling with Elon Musk on the audio chat app Clubhouse. Tenev reportedly mentioned that the choice about restrictions was made by a clearinghouse and was based mostly on the capital necessities. He additionally denied allegations that buying and selling agency Citadel Securities — the biggest market maker in choices within the U.S. — had pushed the agency to impose the boundaries.