SEC inquiry regarding Robinhood’s crypto business reportedly delays IPO

SEC inquiry regarding Robinhood’s crypto business reportedly delays IPO

Major cryptocurrency and stock trading app Robinhood is reportedly struggling to move forward with its initial public offering due to an ongoing review from securities regulators.

According to a Thursday report by Bloomberg, the United States Securities and Exchange Commission has been questioning Robinhood about its cryptocurrency business, resulting in delays for the firm’s public offering plans. The company has been expanding its cryptocurrency offers since March, increasing its workforce and adding more crypto trading pairs.

Our top trading bots

Citing anonymous people familiar with the matter, the report stated that Robinhood’s IPO plan could be delayed until autumn. As previously reported, Robinhood initially planned to launch its IPO in June but postponed the offering to July several weeks ago, with sources claiming that the firm wanted to time its IPO to when people return from the July 4 holiday.

One of the most popular apps to trade stocks and crypto in the United States, Robinhood confidentially submitted a draft IPO registration with the U.S. SEC in March. The company did not originally specify an expected date for its IPO, only stating that it would pursue a public offering “after the SEC contemplates its review process, subject to market and other conditions.”

Robinhood did not immediately respond to Cointelegraph’s request for comment.

Related: Robinhood announces new COO to lead crypto trading desk

After launching cryptocurrency trading in early 2018, Robinhood has seen its crypto business thrive, posting a sixfold quarterly increase in users during the first quarter of 2021. Robinhood’s massive growth this year came despite the controversy around the company suspending trading of GameStop stock this January, facing outrage from the trading community and increased attention from U.S. regulators.

Alongside issues related to GameStop, Robinhood also became a target of public criticism after it allegedly offered trading services to inexperienced investors. In April, Massachusetts’ securities regulators sought to revoke Robinhood’s broker-dealer license in the state, accusing the firm of providing services to Massachusetts customers with little or no investment experience.

Keep reading with Cointelegraph
Currency.com becomes executive member of self-regulating trade group CryptoUK
Crypto trading company Currency.com is joining CryptoUK, a self-regulatory trade association for the cryptocurrency industry in the United Kingdom. In a...
Crypto offers more freedom, Coinbase CEO responds to DOGE creator
Brian Armstrong, co-founder and CEO of Nasdaq-listed cryptocurrency exchange Coinbase, took to Twitter to respond to a recent attack on crypto by Dogecoin...
DeFi on Solana: Solrise raises $3.4M for non-custodial asset management
Solrise Finance, a decentralized finance (DeFi) protocol for the Solana network, has successfully concluded a $3.4-million raise for its non-custodial asset...
Trust is key to mainstream adoption for stablecoins, says Paxos CEO
Paxos CEO Charles Cascarilla believes that stablecoins need solid regulation to go beyond being just a tool for crypto enthusiasts and achieving mainstream...
Elon Musk the hero crypto deserves, but maybe not the one it wants, says exec
Elon Musk’s ability to move cryptocurrency markets with his tweets represents a danger to the average investor, said CoinSwap founder Erik Nurm, but the...
China's crypto crackdown speeds shift to central Asia, North America mining
By Samuel Shen and Alun JohnSHANGHAI/HONG KONG (Reuters) -A crackdown by Beijing is rapidly accelerating a shift in focus by makers of machines that 'mine'...
Litecoin Climbs 12% In Rally
Investing.com - Litecoin was trading at $201.298 by 05:56 (09:56 GMT) on the Investing.com Index on Wednesday, up 11.73% on the day. It was the largest...
Swiss Sygnum Bank to offer custody for Internet Computer token
Switzerland-based cryptocurrency bank Sygnum is launching custody and banking services for Internet Computer (ICP) utility tokens.Sygnum announced on Tuesday...
NFT trading cards: A new way to own collectibles or an asset bubble?
Unique items have long been attracting collectors who are willing to pay top dollar to get them. Paintings, baseball cards, stamps, vintage cards and rare...
Thai SEC says investors should have crypto trading experience
Thailand’s Securities and Exchange Commission has clarified its guidelines to stipulate that those trading cryptocurrencies in the country should have some...
Nifty News: NYT says NFTs in pandemic-fueled bubble, Polkamon eggs produce $1M gas ...
Having just flogged an NFT column for half a million dollars, the New York Times is now wondering if perhaps the whole scene is in a bit of a bubble?In...
China and Japan go full steam ahead with CBDC pilots
China and Japan are pushing forward with their respective pilots for central bank-issued digital currencies, or CBDCs.On March 26, Bank of Japan announced...
What Everyone Should Know About Tokenization
Blockchain tokenization is a means of digital representation of a right and can be done with the help of a ledger. This can be a right to asset ownership...
Blockchain Engineers Make As Much As AI Specialists
Engineers working in the blockchain domain are as demanded as those who work on artificial intelligence. Such a conclusion can be made from the statistics...
Polish Central Bank Admits Campaigning Against Cryptos Via YouTube
Bitcoin and its brethren must have tough times as some governments do not only try to tackle them but also run anti-cyber-money campaigns online, to drive...