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Robinhood Markets Inc., the American financial services firm headquartered in Menlo Park, Calif., Has seen its initial public offering (IPO) delayed by the U.S. Securities and Exchange Commission (SEC). According to a report citing “people familiar with the matter,” the SEC questions Robinhood’s cryptocurrency activity.

SEC Questions Robinhood’s Crypto Transactions, Delayed IPO

Robinhood was supposed to make an initial public offering this month, but according to one report Bloomberg’s listing was slowed down by the SEC. The report quotes a few people familiar with the case and asked: “not to be identified because the case is private”.

However, they say the US regulator has questions regarding the cryptocurrency side of the business, as Robinhood also allows clients to buy popular stocks. Since 2018, Robinhood has allowed customers to buy and trade crypto assets like bitcoin (BTC), dogecoin (DOGE) and ethereum (ETH).

The company came under fire in late January during the Wallstreetbets fiasco which saw Gamestop (GME) shares rise and fall. Customer reports at the time indicated that Robinhood had stopped offering GME, along with other stocks like AMC. This decision was so controversial that Tesla’s Elon Musk attempted to elicit answers in an interview on The Good Time Show through the Clubhouse app.

Nonetheless, the SEC’s current concerns are around cryptocurrency activity that allows users to buy. ETH, DOGE and ETH rather than scrutinizing the stock market fiasco. Renowned investor Warren Buffet spoke about Robinhood and Told CNBC that investing in crypto assets and stocks on Robinhood is akin to casino gambling.

Billionaire investor and Shark Tank star Mark Cuban slammed Robinhood in late April and mentionned: “The biggest obstacle to its growth is that you can’t spend the Doge you buy on Robinhood.” Bloomberg’s financial columnist Katie Roof’s report on the SEC and Robinhood on Friday noted that the US regulator is very busy dealing with IPOs.

The SEC also deals with crypto-based Special Purpose Acquisition Companies (SPACs) and bitcoin exchange-traded fund (ETF) deposits. Roof points out that Robinhood’s delay is similar to that of Coinbase Global Inc., which overtook its IPO.

Prior to Coinbase’s listing, the exchange was required to pay the Commodity Futures Trading Commission (CFTC) $ 6.5 million for “inaccurate reports as well as for washing operations.” The SEC further ad this week, he delayed the Bitcoin ETF’s decision for the Valkyrie Digital Assets listing proposal.

What do you think about the delay in Robinhood’s IPO? Let us know what you think of this topic in the comments section below.

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AMC, CFTC, Coinbase, Delay IPO, Doge, dogecoin, elon musc robinhood, GME, IPO, IPO Delay, IPO Listing, Mark Cuban, rapport, Robinhood, robinhood bitcoin, SEC, Wallstreetbets, Warren Buffet

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