“The Florida Attorney General Said there is evidence that crypto trading on robinhood is an actual More expensive due to it.”, – WRITE: www.coindesk.com
In a thursday press STatement, Florida Attorney General James Utthmeier Said His Office Has Evidence to Suggest That Crypto Traders Actually Pay More, On Averrage platForms.
“Crypto is a vital component of Florida’s Financial Future, and President [Donald] Trump’s Efforts to Advance the Crypto Market Will Make America Stronger and Wealthier. WHEN Consumers Buy and Sell Crypto Assets, They Deserts Transparency in Their Transactions, ”Uthmeier Said.
At the Heart of Uthmeier’s Allegation Is Robinhood’s Payment for Order Flow (Pfof) Business Model. Pfof Allows Robinhood to Offer Commission-Free Trading by Insthead Generation Revenue from Routing ITS Customer Trades Through Market Mkers in Exchange for A Cut of the Profits. Critics of the Practice – WHICH ROBINHOOD also uses for Stock Trading – Have Complated that Pfof Presents An Interest of Interest, Pontilly Inceient. Maker OFFERING The MOST Commission, Not The One With The Best Price for Customers.
In 2020, Robinhood Paid $ 65 Million to Settle a US Securities and Exchange Commission (SEC) Enforcement Action Alleging that the Company Misrepresented the Quality of ITSECIONS. Robinhood Did not admit or den. Under Former Chair Gary Gensler, The Sec Considered Banning Pfof But Ultimately Did Not. Pfof is Banned in the United Kingdom and Will Be Banned in the European Beginning Next Year.
Robinhood CEO Vlad Tenev Has Long defended the Practice, Telling CNBC in 2023 that pfof was “Inherently here to Stay.”
“Our Disclosures Are Best-in-Class-We Disclose Prting Information to Customers Durying The Lifecycle of A Trade That Clearly Outlines The Spread or The Fees Associated ath Receives.
Uthmeier’s Subpoena is seeking a Slew of Information from Robinhood, Including Docmentation of How The Platform Dermines Pricing for Transaction Rebates or PFOFCTICES WITH MARKETICES WITH. Comparative Price AnalySes of Other Crypto Exchanges, and Documents Relating to The Sale or Access of Users’ Crypto Trading Data.
Robinhood has util the end of the month to resist to the utthmeier’s subpoena.
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