Rep. Alexandria Ocasio-Cortez (D-NY) known as on Congress to research the Robinhood app after it banned small traders from shopping for inventory in firms like GameStop. During the last week, Reddit customers have shorted the bemoaned online game retailer’s inventory in what some are calling the “squeeze of a lifetime.”
In a Thursday tweet, Ocasio-Cortez known as Robinhood’s choice to dam retail traders from buying inventory in firms like GameStop and Blackberry “unacceptable,” and that’d she’d “help a listening to if vital.” Ocasio-Cortez is a member of the Home Monetary Providers Committee, which has jurisdiction to oversee the stock market and “securities and exchanges” extra broadly.
Sen. Ted Cruz (R-TX) retweeted her message, saying “Absolutely agree.”
The Verge contacted the Home Monetary Providers Committee for touch upon Thursday, but it surely didn’t instantly reply. When reached for remark, the Senate Finance Committee directed The Verge to the Senate Banking Committee. The Senate Banking Committee didn’t instantly reply to a request for remark.
Different progressive Democrats have additionally made statements on the GameStop shorts, calling for additional regulation of the monetary business. “It’s long gone time for the SEC and different monetary regulators to get up and do their jobs — and with a brand new administration and Democrats working Congress, I intend to verify they do,” Sen. Elizabeth Warren (D-MA) stated in a press release Wednesday.
Silicon Valley progressive Rep. Ro Khanna (D-CA) put out a press release Thursday saying, “We’re finished letting hedge fund billionaires deal with the inventory market like their private playground, then taking their ball residence as quickly as they lose,” he continued. “We’d like extra regulation and equality within the markets.”
Afterward Thursday, Khanna retweeted Ocasio-Cortez, writing, “We’d like an investigation into RobinhoodApp’s choice and who influenced that. And this reveals the necessity for a monetary transaction tax on hedge fund shorting and SEC rules on quick promoting practices.”
It’s unclear if Congress will transfer ahead with an investigation into Robinhood or the GameStop scenario at giant. At a press convention Thursday, Home Speaker Nancy Pelosi (D-CA) stated “fascinating, isn’t it?” when requested in regards to the GameStop shorts, however didn’t forecast any actions Congress deliberate to take relating to the scenario. The committees with jurisdiction have but to make any main bulletins both.