Robinhood and Redditors are reviewed by the US Securities and Exchange Commission.
At least in many words, the SEC issued a joint statement on Friday expressing concern about the “extreme volatility in the trading prices of some stocks in recent days.”
While the committee did not use the words “GameStop”, “Robinhood” or “Reddit”, it is clear that the committee is talking about the recent turmoil around these three. This has already generated strong organizational pressure. However, the Securities and Exchange Commission (SEC) has determined:
“The Commission will carefully consider actions taken by regulated entities that could harm investors or unreasonably impede their ability to trade certain securities.”
Robinhood, which is already the subject of significant user backlash, is evident in these ad scenes, as the news is centered on the “regulator,” meaning the middleman and dealer. Robinhood has no parallels with the closure of GME and other stocks, but the company’s closure of sales, but not purchases, has generated a lot of anger from casual investors and observers.
At the same time, many point to r / WallStreetBets, the Reddit group that teamed up to buy and save Gamestop, as an example of classic market manipulation or other stock violations at the new media center. Mark Powers, who previously worked at the Securities and Exchange Commission’s Enforcement Administration and Assistant Professor in Blockchain Regulation at Florida International University, defended this point of view, but offered alternatives to classic enforcement:
Another way to deal with this issue, rather than harassing individuals, is to issue Report 21 (a) to provide the market and these new investors in general with guidance on the SEC’s views on market manipulation and other laws that may apply in a situation similar to what the SEC did with the release of the DAO report, which includes the ICO in July 2017. ”
Bowers pointed out that the SEC initially introduced the first coin offerings, which it refused to sell at the time, but led to collective pressure on subsequent ICOs.
But that may be the result of the House, Senate and Presidency suddenly being ruled by the Democratic Party and seeking to restore the Wall Street-backed legacy of the past four years, yet very few at the federal level are serious about doing anything about the editors. …