Robinhood CEO to reportedly testify before US House committee over GameStop

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Robinhood CEO Vlad Tenev will reportedly testify earlier than america Home Monetary Companies Committee over the agency’s function within the risky buying and selling of GameStop and different risky shares.

In line with 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 acquainted with the matter.

Waters formally announced the Monetary Companies 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 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 number of 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 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 brief squeeze. On Jan. 29, the U.S. Securities and Alternate 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 way of the r/Wallstreetbets Reddit neighborhood. 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.