Lawmakers announce hearings on GameStop and online trading platforms

Lawmakers announce hearings on GameStop and online trading platforms

The GameStop quick squeeze saga caught the eye of Congress Thursday morning and that buzz is already panning out into hearings on the subject.

Rep. Maxine Waters (D-CA), chairwoman of the House Committee on Financial Services, introduced plans for an investigation into the scenario, pointing to a historical past of “predatory conduct” from hedge funds.

Waters didn’t name out Robinhood or some other buying and selling providers by identify, however did notice {that a} future listening to would give attention to the systemic monetary impression of quick promoting, “gamification” and on-line buying and selling platforms. The listening to date just isn’t but set.

“Addressing that predatory and manipulative conduct is the duty of lawmakers and securities regulators who’re charged with defending buyers and making certain that our capital markets are honest, orderly, and environment friendly,” Waters mentioned.

#BREAKING: Following Recent Market Instability, Chairwoman @RepMaxineWaters Announces Hearing on Short Selling, Online Trading Platforms |

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— Financial Svcs Cmte (@FSCDems) January 28, 2021


In the Senate, incoming Senate Banking Chairman Sherrod Brown introduced his personal plans for a listening to on the “present state of the inventory market” in mild of current occasions. “People on Wall Street solely care in regards to the guidelines once they’re those getting damage,” Brown mentioned.

Earlier on Thursday, Democratic Reps. Rep. Rashida Tlaib, Alexandria Ocasio-Cortez and Ro Khanna all condemned the startup Robinhood for halting some trades within the midst of the Reddit retail investor-led volatility. Morgan Stanley-owned E-Trade adopted swimsuit.

Texas Republican Senator Ted Cruz echoed Democrats’ issues over Robinhood’s actions, signaling that even within the midst of pandemic reduction negotiations and an impeachment trial that lawmakers on each side of the aisle nonetheless have an urge for food for dragging tech in for questioning.

And apparently it’s not simply Congress. New York Attorney General Letitia James additionally issued a brief assertion Thursday noting that her workplace is “conscious of issues raised concerning exercise on the Robinhood app” and can be reviewing the scenario.

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AOC, Ted Cruz slam Robinhood for freezing some trades amid GameStop volatility


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