The Reddit community versus Wall Street is escalating into a bigger issue. The issue is becoming more complicated especially after Robinhood put a halt on GameStop trading. Just a few hours after the GameStop trading halt, lawmakers are joining forces to investigate deeper into the issue and review them soon. Several customers are also suing Robinhood for damages on the sudden change of regulations.
Notable figures jump in to investigate and review the phenomenon
GameStop trading uproar has come into Congress’ sight. Rep. Maxine Waters (D-CA), chairwoman of the House Committee on Financial Services will further investigate on what she calls a history of “predatory conduct” from hedge funds.
“Addressing that predatory and manipulative conduct is the responsibility of lawmakers and securities regulators who are charged with protecting investors and ensuring that our capital markets are fair, orderly, and efficient,” Waters said, as quoted from Tech Crunch.
More and more notable figures and lawmakers are also coming forward to untwist the case. Through his personal Twitter account, Senate Banking Chairman Sherrod Brown revealed to be planning a hearing on the stock market’s situation. Numerals democratic Reps, Texas Republican Senator Ted Cruz, and New York Attorney General Letitia James also voiced similar concern over the current market state.
GameStop trading halt causes damage, customers sue Robinhood
The situation is getting more complicated for Robinhood. According to Reuters, two customers have sued Robinhood due to the trading ban, seeking damages. Some Robinhood users are also taking their dismay on Twitter. Several people claimed to have received notifications that Robinhood was selling their shares without consent. In the meantime, Robinhood has not given any response regarding the issue.
Due to incoming complaints, Robinhood is planning to cancel the trading halt. Instead, it will its users to purchase the “halted” securities on a limited amount. Robinhood will lift the trading ban on Friday.
Read also: Challenging TikTok, Reddit to Acquire Dubsmash
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