Robinhood’s Prepared IPO Faces Delays Amid SEC Evaluation

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Robinhood’s system to go general public this summertime is going through delays as federal regulators scrutinize its growing cryptocurrency enterprise, Bloomberg studies.

Quite a few people acquainted with the subject advised the outlet on Thursday that Robinhood has been locked in a again-and-forth with the Securities and Trade Fee in the latest months. SEC officials have been inquiring the inventory trading application maker about its latest thrust into cryptocurrency, one particular of the resources stated underneath the situation of anonymity according to Bloomberg.

Robinhood experienced at first specific June for its IPO following at first submitting in March. Nevertheless, that deadline later on shifted to July, Bloomberg described before this thirty day period, and these new regulatory hurdles could force it back even even more, probably into the fall. Robinhood designs to expose its financials as quickly as probable and to go community as before long the SEC finishes its evaluation, the outlet’s sources claimed. A spokesperson for Robinhood declined to comment.

In 2018, Robinhood rolled out its Crypto unit for customers to trade electronic currencies this kind of as bitcoin and ethereum. As cryptocurrencies come to be more and more much more mainstream, Robinhood has recognized by itself as an entry place for new investors on the lookout to dip their toes in the notoriously unstable market place. It delivers a wider range than competition this sort of as PayPal, together with the joke currency Dogecoin, a token that commenced as a meme and has been heavily pushed by billionaire Elon Musk.

Some 1.7 million persons traded cryptocurrencies on Robinhood’s app in the final quarter of 2020, a determine that soared to 9.5 million in the initial quarter of 2021, the firm reports. The GameStonks drama previously this 12 months prompted a wave of federal scrutiny that evidently Robinhood is nevertheless having difficulties to shake, with regulators arguing that the web page encourages the match-like nature of trading to the detriment of inexperienced retail investors.

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