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Robinhood CEO 'to Testify Before Congress' as Trading App Puts IPO Plans on Ice

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Published on:
February 2, 2021

Reports suggest an IPO is being delayed 'to focus on surviving the current drama.'

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The CEO of Robinhood is reportedly set to testify before the House Financial Services Committee later this month.

 

Vlad Tenev could end up facing tough questions over the restrictions that were imposed in trading GameStop stock, according to Politico.

 

The committee has announced it’s going to hold a session called: “Game Stopped? Who wins and loses when short sellers, social media, and retail investors collide.”

 

News surrounding the embattled trading app has been coming in thick and fast. The online broker had to raise $2.4bn — its second cash injection in the space of four days — as it struggles to keep up with “the incredible growth we’ve seen.”

 

Meanwhile, the Fox Business Network has reported that Robinhood is postponing its plans to pursue a hotly anticipated IPO.

 

According to Charles Gasparino, executives want “to focus on surviving the current drama over trading of stocks and settlements issues.”

 

But according to Bloomberg, the company’s plans for an IPO now look increasingly critical — and “could make it easier for Robinhood to muster financial resources in the future to help meet any regulatory requirements.”

 

The report added that the success of an IPO often depends on having “well-timed momentum” — noting that this is something Robinhood has in spades right now, with millions of people turning to investing during the coronavirus pandemic.

 

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