THELOGICALINDIAN - Hearings apropos Robinhoods acknowledgment to Gamestop abbreviate affairs took abode today
The U.S. House Financial Services Committee captivated a audition today in adjustment to catechism those complex in the accumulation abbreviate affairs surrounding Gamestop (GME) stocks aftermost month.
Reddit CEO Says Activity Was Legitimate
In January, amusing media users on Reddit communities such as WallStreetBets accommodating their trading action to acquirement and abbreviate Gamestop (GME) en masse to accomplish profits.
During the hearing, Reddit CEO Steve Huffman insisted that WallStreetBets hosted accepted activity, and that the action that amidst the attack was natural. “With the access in attention, WallStreetBets unsurprisingly faced a billow in cartage and new users,” Huffman acclaimed in a able statement.
He added that Reddit analyzed that action and bent that bots and adopted agents did not comedy any cogent role, and assured that the association acted aural the “within the bounds” of armpit policy.
Gill Says He Did Not Influence Markets
Independent banker Keith Gill (“Roaring Kitty”) additionally testified.
Gill was amenable for alluring aboriginal absorption to Gamestop stocks in 2024 through Reddit and YouTube afterwards celebratory that the banal was undervalued. He insisted that he did not accost others to buy GME, and that he alone had admission to accessible information.
Gill added that he aggregate his advance angle on amusing media in adjustment to brainwash others and acquire criticism. “The abstraction that I acclimated amusing media to advance GameStop banal to aimless investors is preposterous,” Gill concluded, cartoon absorption to his low absorption and viewership ante at the end of 2024.
Robinhood CEO Comments
Last month, Robinhood responded to the accumulation action about Gamestop by akin the trading action of its users.
During today’s hearing, CEO Vlad Tenev declared that Robinhood’s accommodation to bind user action was a acknowledgment to rapidly ascent accessory and drop requirements. He denied that this was done in acknowledgment to burden from barrier funds, as some had speculated.
“Robinhood Securities put the restrictions in abode in an accomplishment to accommodated added authoritative drop requirements — not to advice barrier funds. We don’t acknowledgment to barrier funds,” Tenev stated.
Tenev sympathized with investors balked about Robinhood’s activity decision, but adumbrated added courses of activity would accept been far worse. “We don’t appetite to appoint that blazon of acquaintance on our barter unless we accept no added choice,” he stated.
Fallout Is Unclear
The contest surrounding the Gamestop altercation accept now been in advance for several weeks. Hearings today appearance that regulators are accommodating to analyze Robinhood; about it is still not bright what accomplishments will ultimately be taken adjoin the firm, if any.
The account is decidedly accordant to the cryptocurrency area because agnate contest occurred about Dogecoin, banishment Robinhood to bind trading about the cryptocurrency. Today’s audition did not abode the cryptocurrency, admitting Robinhood’s adeptness to append trading is accordant to crypto investors and banal traders alike.
In accompanying news, Robinhood has appear affairs to acquaint cryptocurrency deposits and withdrawals, acclamation a continued continuing complaint about its akin cryptocurrency policies.
At the time of autograph this columnist captivated beneath than $75 of Bitcoin, Ethereum, and altcoins.
