Robinhood CEO to reportedly testify before US House committee over GameStop

Robinhood CEO Vlad Tenev will reportedly testify earlier than the US Home Monetary Providers Committee over the agency’s position within the unstable buying and selling of GameStop and different unstable shares.

Based on a report by the American political publication Politico, Tenev is predicted 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 announced the Monetary Providers Committee’s plans to carry a GameStop-related listening to on Feb. 18. Entitled “Sport Stopped? Who Wins and Loses When Brief Sellers, Social Media, and Retail Buyers Collide,” the listening to will deal with 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 among the hedge funds that had been concerned with this,” Waters reportedly stated.

The announcement didn’t specify what witnesses will take part within the listening to. Robinhood has not formally introduced Tenev’s participation to date. 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 Change Fee hinted that it was looking at Robinhood’s issues with GameStop, expressing concern over “excessive worth volatility of sure shares’ buying and selling costs.”

Robinhood’s GameStop saga began on Jan. 28 when the corporate suspended buying for GameStop stock and different shares that had been allegedly pumped by means of 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 stocks on Feb. 8. Nonetheless, Robinhood customers are restricted to only one GameStop share.

On Feb. 1, Robinhood’s Tenev discussed the agency’s transfer to limit buying and selling with Elon Musk on the audio chat app Clubhouse. Tenev reportedly stated that the choice about restrictions was made by a clearinghouse and was primarily based on the capital necessities. He additionally denied allegations that buying and selling agency Citadel Securities — the most important market maker in choices within the U.S. — had pushed the agency to impose the bounds.