Yellen convenes SEC, CFTC and Fed leaders on Robinhood question

Yellen convenes SEC, CFTC and Fed leaders on Robinhood query

The 4 horsemen of U.S. monetary regulation will meet to debate market manipulation considerations ensuing from the headline-grabbing drama surrounding GameStop inventory final week. 

Per a Feb. 2 report from the Wall Road Journal, Treasury Secretary Janet Yellen is gathering the management of the Securities and Trade Fee, the Commodity Futures Buying and selling Fee, and the Federal Reserve, probably as quickly as Thursday. 

The SEC already introduced that it was trying into latest market manipulation. The inclusion of the CFTC and the Fed recommend that the dialog goes to increase far past Robinhood, Reddit and GameStop. 

Other than the spillover impact of that very same market volatility into commodities like silver, there’s a broader query of the function of social media. Provided that the unfold of international disinformation through social media has been a central concern for nationwide safety for a number of years, there is no such thing as a query that the flexibility of social media actions to have an effect on markets is extra regarding to regulators than simply the destiny of Melvin Capital. 

On the similar time, the SEC and legislators alike indicated nice displeasure with the habits of markets themselves, together with the function of Robinhood, which shut off GME shopping for at a crucial level final week.

Talking with Cointelegraph, Ridgway Barker, chair of company finance at legislation agency Withers, famous that Robinhood was in a bind as a dealer. 

“I may see a world the place now we have tokenized securities and it doesn’t undergo a gatekeeper like a dealer,” mentioned Barker. “Robinhood actually didn’t have a selection besides to restrict buying and selling. However if you happen to weren’t going by a dealer, if you happen to had been going dealer to dealer, you’d keep away from a few of these systemic points.”

The Treasury had not responded to a request for remark as of publication time.