Robinhood CEO Vlad Tenev will reportedly testify before the United States House Financial Services Committee over the firm’s role in the recent volatile trading of GameStop and other volatile stocks. According to a report by the American political publication Politico, Tenev is expected to participate in a virtual hearing headed by Representative Maxine Waters (D-Calif.) on Feb. 18. Politico’s report cited anonymous people familiar with the matter.
Financial Service Committee’s plans to hold a GameStop-related hearing.
Waters officially announced the Financial Services Committee’s plans to hold a GameStop-related hearing on Feb. 18. Entitled “Game Stopped? Who Wins and Loses When Short Sellers, Social Media, and Retail Investors Collide,” the hearing will focus on recent market volatility issues involving GameStop and other stocks. “I am concerned about whether or not Robinhood restricted the trading because there was collusion between Robinhood and some of the hedge funds that were involved with this,” Waters reportedly said. However, the announcement did not specify what witnesses will participate in the hearing.
Robinhood has not officially announced Tenev’s participation so far.
Several U.S. regulators have already drawn attention to Robinhood’s handling of the GameStop short squeeze. On Jan. 29, the U.S. Securities and Exchange Commission (SEC) hinted that it was looking at Robinhood’s issues with GameStop, expressing concern over “extreme price volatility of certain stocks’ trading prices.” Robinhood’s GameStop saga started on Jan. 28 when the company suspended buying for GameStop stock and other allegedly pumped shares through the r/Wallstreetbets Reddit community. The trading app subsequently restricted trading for as many as 50 stocks on Friday before narrowing eight stocks’ restrictions on Feb. 8. Still, Robinhood users are limited to just one GameStop share.