Robinhood IPO delayed as a consequence of SEC investigation into enterprise practices

Robinhood initially hoped to start a public providing after US traders returned from the July 4 vacation.

Cryptocurrency and inventory trading app Robinhood is reportedly struggling to advance to an preliminary public providing as a consequence of an ongoing overview course of from securities regulators.

According to a report Thursday by Bloomberg, the U.S. Securities and Exchange Commission questioned Robinhood about its cryptocurrency enterprise, ensuing within the firm’s deliberate public providing being delayed. . The firm has been increasing its crypto providing since March, growing its workforce and including extra crypto trading pairs.

Citing nameless individuals accustomed to the matter, the report says that Robinhood’s deliberate IPO might be delayed till the autumn. As beforehand reported, Robinhood initially deliberate to launch its IPO in June however postponed the providing to July a couple of weeks in the past, with sources suggesting the corporate wished to delay its IPO till everybody who returned from 4/7 trip.

One of the preferred apps for trading shares and cryptocurrencies within the United States, Robinhood secretly filed a draft IPO utility with the SEC in March. The firm didn’t initially specify an anticipated date. for its IPO, solely saying it might pursue a public providing “after the SEC reviews its review process, subject to market and other conditions.”

After launching crypto trading in early 2018, Robinhood has seen its crypto enterprise thrive, with its person base rising sixfold quarterly within the first quarter of 2021. Robinhood’s robust progress this 12 months regardless of the controversy surrounding the corporate’s halting of GameStop inventory trading this January has confronted outrage from the trading neighborhood and elevated consideration from business insiders. US regulatory company.

Along with the issues associated to GameStop, Robinhood additionally grew to become the goal of public criticism after being accused of offering trading companies to inexperienced traders. In April, Massachusetts securities regulators sought to revoke Robinhood’s broker-dealer license within the state, accusing the corporate of offering companies to Massachusetts clients with little or no funding expertise. fourth.

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