Homepage > News > The IPO of the Robinhood broker is delayed by the actions of the SEC

The IPO of the Robinhood broker is delayed by the actions of the SEC

The US Securities and Exchange Commission (SEC) is to look in detail at the cryptocurrency activity of the Robinhood broker, which may delay its entry on the market to the end of the year, reports Bloomberg, citing an anonymous source.

The doubts of the American regulator are mainly related to the company’s cryptocurrency activities. This year, we saw crypto assets begin to become an increasingly important part of Robinhood’s offering. Sometimes, however, the platform was unable to handle the heavy traffic and crashed. The broker’s trading infrastructure has crashed several times during the recent cryptocurrency boom, failing to cope with the increased demand.

Robinhood’s initial public offering (IPO) application was filed in March. The company’s ambitious plans assumed that it would go public in June this year, but later, the process was delayed, and everything was postponed until July. Due to the SEC’s actions, the term of Robinhood’s IPO is moving further in time. Currently, it is expected that the company will go public not earlier than in autumn.

Fintechs in the crypto market

Robinhood was one of the first fintech to incorporate cryptocurrency trading into its services. Earlier this year, the trading app indicated that the demand for the sale and purchase of digital assets increased by more than 5.5 times in one quarter. At the end of 2020, 1.7 million platform users were trading on the crypto market. At the end of the first quarter of 2021, it was already 9.5 million customers.

However, Robinhood is not the only fintech taking advantage of the interest in the cryptocurrency market. The beginning of the bitcoin boom also brought significant profits for the British Revolut. According to the report for 2020, the London fintech earned 39 million pounds on cryptocurrencies.

Author: Izabela Kamionka

Are you a trader?

Help others and rate your broker! Use the search engine or find your broker on the list.


Last news:

german economy

German Business Climate Dips, Indicating Looming Extended Recession

A successive drop in German business morale in June indicates an impending lengthier recession for ...
ropa naftowa

Nigeria’s Oil Market Faces Crisis as Half of Output Goes Unpurchased

The Nigerian oil market is currently facing a significant surplus, with nearly half of next ...
Week for Wall Street

Stock Futures Fall, Investors Eye Powell’s Testimony

Stock futures are indicating a downtrend ahead of the Federal Reserve Chair, Jerome Powell's second ...

Euro Maintains Position Despite Russia’s Drastic Reduction in Use – ECB Report

Despite Russia's significant reduction in its use, the Euro stood its ground as the world's ...

Add a comment

Your email address will not be published. Required fields are marked *


Note: Opinions and posts on ForexRev.com represent personal opinions and views of their respective authors and should not be interpreted as recommendations to purchase or sell securities. ForexRev.org assumes no responsibility or liability for such content.
Go to top