Business

Massachusetts regulator seeks to revoke Robinhood's broker-dealer license


Massachusetts' securities regulator is seeking to revoke the broker-dealer license of cryptocurrency-friendly stock trading app Robinhood in the state.


The state pointed to Robinhood's recent activity, including a promotion that provides customers with cash rewards based on new deposits, as proof of a “firm culture which has not changed.”


The firm has filed a lawsuit seeking to invalidate a recently adopted fiduciary rule in Massachusetts that state regulators have accused it of violating.


A note on his computer reportedly posed the question, “How was a 20 year old with no income able to get assigned almost a million dollars worth of leverage?” In February 2021, Kearns’ parents filed a lawsuit against Robinhood over his death.


Robinhood has been also experiencing a number of technical issues, reportedly causing major losses for traders and triggering further legal action against the company.


The most recent such event occurred on Thursday when Robinhood's crypto trading platform ran into technical issues as Dogecoin ( DOGE ) hit a new all-time high of $0.27.






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