SEC reportedly delays Robinhood's IPO due to its growing crypto business

The Block • June 25, 2021, 7:56AM EDT
The Block

The U.S. Securities and Exchange Commission (SEC) has reportedly slowed down Robinhood's listing plans due to the company's crypto business.

Bloomberg reported the news on Friday, citing anonymous sources familiar with the matter. One of which said the SEC is questioning Robinhood about its growing cryptocurrency business.

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California-based Robinhood offers trading in stocks, exchange-traded funds, and crypto. The online brokerage launched its crypto business in 2018 and saw nearly 10 million customers trade crypto on its platform during the first quarter of this year. Robinhood supports trading in several cryptocurrencies, including bitcoin, ether, and dogecoin.

Robinhood CEO Vlad Tenev recently said that the company plans to hire a "ton" of people for its cryptocurrency operations, given the substantial interest from customers.

Robinhood initially planned to hold an initial public offering (IPO) this month, which was then postponed to July. Now the regulatory scrutiny could push back the event as far as this fall, one source told Bloomberg.

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Yogita Khatri is a senior reporter at The Block, covering all things crypto. As one of the earliest team members, Yogita has played a pivotal role in breaking numerous stories, exclusives and scoops. With nearly 3,000 articles under her belt, Yogita holds the records as The Block's most-published and most-read author of all time. Prior to joining The Block, Yogita worked at crypto publication CoinDesk and The Economic Times, where she wrote on personal finance. To contact her, email: [email protected]. For her latest work, follow her on X @Yogita_Khatri5.

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