Robinhood Markets Inc planned to roll out its Initial Coin Offering (IPO) this month. But it seems the listing plan will be shifted due to its review by the Securities and Exchange Commission (SEC).
The SEC has been enquiring about Robinhood’s growing cryptocurrency business, according to a close source who asked to be anonymous.
Robinhood had initially planned to go public in June after filing with the SEC the previous month. But due to the SEC’s delay, the listing is likely going to be billed next month.
And according to reports, the IPO may most likely go live in the fall if the July date is not feasible.
Robinhood has been a subject of severe criticisms from regulators in the past months, as the platform is alleged to be encouraging the game-like nature of trading.
The company hopes the SEC will not have much trouble reviewing its filling and hopes to go public as soon as the regulator gives the node.
Robinhood’s crypto business
The trading app dabbled into crypto trading in 2018 after allowing its customers to trade crypto assets like Ethereum and Bitcoin. It has since added Dogecoin to the list. The platform caters mostly to new retail investors, making it one of the top choices for those looking to get exposed to cryptocurrency trading.
Cryptocurrency investors have been very active in the market, as crypto assets went on a wide ride this year. Bitcoin’s price has dropped considerably ever since it hit an all-time high of $64,000 in mid-April.
SEC wants to protect investors’ interest
The market is seen as one of the most volatile in the world, and regulatory bodies are bent on protecting investors from the high volatility in the market.
The SEC has been very busy this year for IPOs, as more companies file to go public. The financial watchdog has increased its regulation and plans to make several rulings on the crypto business in the coming months. This review of Robinhood’s crypto business is seen as part of measures to make sure investors are protected from the speculative and volatile crypto market.