Yellen convenes SEC, CFTC and Fed leaders on Robinhood question

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The 4 horsemen of U.S. monetary regulation will meet to debate market manipulation considerations ensuing from the headline-grabbing drama surrounding GameStop inventory final week. 

Per a Feb. 2 report from the Wall Road Journal, Treasury Secretary Janet Yellen is gathering the management of the Securities and Change Fee, the Commodity Futures Buying and selling Fee, and the Federal Reserve, probably as quickly as Thursday. 

The SEC already introduced that it was looking into recent market manipulation. The inclusion of the CFTC and the Fed recommend that the dialog goes to increase far past Robinhood, Reddit and GameStop. 

Other than the spillover impact of that very same market volatility into commodities like silver, there’s a broader query of the function of social media. On condition that the unfold of overseas disinformation through social media has been a central concern for nationwide safety for a number of years, there isn’t any query that the flexibility of social media actions to have an effect on markets is extra regarding to regulators than simply the destiny of Melvin Capital. 

On the similar time, the SEC and legislators alike indicated nice displeasure with the habits of markets themselves, together with the function of Robinhood, which shut off GME shopping for at a vital level final week.

Talking with Cointelegraph, Ridgway Barker, chair of company finance at regulation agency Withers, famous that Robinhood was in a bind as a dealer. 

“I might see a world the place we’ve tokenized securities and it doesn’t undergo a gatekeeper like a dealer,” mentioned Barker. “Robinhood actually didn’t have a alternative besides to restrict buying and selling. However in case you weren’t going by means of a dealer, in case you have been going dealer to dealer, you’ll keep away from a few of these systemic points.”

The Treasury had not responded to a request for remark as of publication time.