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Robinhood Markets Inc. mentioned that regulatory intervention in cryptocurrency buying and selling, and in a cost association between brokerages and buying and selling companies, may pose dangers to its enterprise.
The Menlo Park, California-based brokerage cited the dangers Friday in an amended submitting, in search of to hurry up approval for a beforehand introduced shareholder inventory sale. The agency pointed to feedback by Securities and Trade Fee Chair Gary Gensler on latest initiatives the company is endeavor, together with reviewing a system known as cost for order circulate that accounts for a big slice of Robinhood’s income, and evaluating digital foreign money markets.
“The regulatory panorama involving cryptocurrencies is continually evolving and is topic to vary,” Robinhood mentioned within the amended submitting.
The agency additionally famous that crypto trades made up a 41% share of its income within the second quarter, a interval when funding in digital currencies swelled. One other key stream of income, cost for order circulate on inventory and choices trades, may additionally come below fireplace by the SEC, Robinhood mentioned, citing a Gensler interview in August.
© 2021 Bloomberg L.P.
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