Online broker Robinhood Markets, which planned to go public this month, postponed its listing due to disputes with regulators over an IPO prospectus. According to them, the US Securities and Exchange Commission (SEC) has questions to Robinhood regarding the growing cryptocurrency business of the company.
So far, it is known that the SEC is studying the IPO documentation of the platform in the most thorough way. And especially what is related to cryptocurrencies. This SEC policy is related to the fact that the central authorities also pay close attention to the cryptocurrency market.
The company emphasizes that the IPO will be carried out, while it is postponed. The exact date not named.
Once the verification completed by the SEC, then the platform will provide all the necessary financial information to stakeholders.
According to one of the sources, the IPO may take place this summer. But it is possible that the placement of shares of the popular trading application on the stock exchange may be postponed until the fall.
Robinhood filed documents with the SEC for an IPO at the end of March.
SEC will continue to audit companies that use cryptocurrencies
Since Robinhood decided to go into cryptocurrencies, this has generated such keen interest from the SEC. And this is not the only case. Checks are conducted against other retail investors. In particular, this also affected Coinbase. The platform was able to list and this could serve as an encouraging sign for cryptocurrency companies.
The SEC is not going to put insurmountable barriers for all platforms, they just do their job and government orders. So Robinhood can count on listing approval. The company does not lose support from investment funds and investors.
It should be noted that the attention of the SEC is also due to the fact that the authorities fear that criminal syndicates will finance their activities with the help of cryptocurrencies. Therefore, the United States began the process of regulating cryptocurrencies. So far, he is only at the very beginning.
Most likely, the SEC will continue checks in relation to companies that plan to use cryptocurrencies in their operations. This trend is typical for other countries as well.
Regulators and central banks are trying to introduce a specific set of rules for the cryptocurrency market in an attempt to prevent fraud with these assets. How far the regulation process will go is still unknown. But there is no doubt that the crypto market will have to change in order to develop further.
Robinhood and IPO
Based on the results of the placement, the company will be able to receive an estimate of up to $ 50 billion. At first, the company planned to conduct an IPO on the NASDAQ stock exchange in June. But then the placement was postponed to July.
According to the agency, Goldman Sachs is preparing Robinhood for listing. According to one of the interlocutors of the agency, during the IPO, the company plans to allocate part of the shares to its users, of which there are already about 13 million people. And, thus, to test the mechanism of access to the initial placement of amateur traders.
Robinhood opened its users access to cryptocurrency trading in 2018. Its clients can now trade cryptocurrencies such as Bitcoin, Ethereum, and Dogecoin. Since about half of Robinhood’s users are newbie investors, an online broker is often the entry point for newbies into digital currency markets that can be volatile.
The price of Bitcoin this year briefly jumped above $ 64 thousand in mid-April. But in June its value fell below $ 30 thousand. According to the agency, the SEC is preparing to make a number of important decisions to regulate the digital currency market in the coming months.