Software Developer

Massachusetts’ securities regulator is reportedly investigating Robinhood’s newly launched prediction-markets hub.Secretary of State Bill Galvin told Reuters on Monday (March 24) that his office sent a subpoena to Robinhood seeking copies of the company’s marketing materials and information about how many of the company’s brokerage account users in the state have requested to trade college sports events contracts.“This is just another gimmick from a company that’s very good at gimmicks to lure investors away from sound investing,” Galvin told Reuters, speaking of Robinhood’s prediction-markets hub.The growing popularity of event contracts has drawn criticism from some who liken them to gambling, according to the report.Galvin told Reuters, per the report, that he is concerned about linking an event that’s popular with young people to a brokerage account.A Robinhood spokesperson said in a statement provided to Reuters that the events contracts it offers are regulated by the Commodity Futures Trading Commission and offered through CFTC-registered entities.“Prediction markets have become increasingly relevant for retail and institutional investors alike, and we’re proud to be one of the first platforms to offer these products to retail customers in a safe and regulated manner,” the statement said.Robinhood announced March 17 that it added a prediction markets hub to its app, allowing users to trade on the outcomes of events.The company said at the time in a press release that the first contracts, which started rolling out that day, covered what the upper bound of the target Fed funds rate would be in May and who would win the men’s and women’s college basketball tournaments.“We’re excited to offer our customers a new way to participate in the prediction markets and look forward to doing so in compliance with existing regulations,” JB Mackenzie, vice president and general manager of futures and international at Robinhood, said in the release.In an earlier, separate case, Galvin said in January 2024 press release that Robinhood agreed to pay a $7.5 million fine and overhaul its digital engagement practices to settle a 2020 case he brought that accused the company of using gamification strategies to “attract and manipulate” customers.The settlement also addressed issues having to do with a 2021 data breach, Galvin said in the Jan. 18, 2024, release

The Security and Exchange Commission’s (SEC) case against Ripple has concluded, according to that company’s CEO. In a post Wednesday (March 19) on X, Brad Garlinghouse wrote that the commission had dropped its appeal in its case against the blockchain company, the latest in a string of cryptocurrency enforcement efforts called off by the regulator since President Donald Trump took office. “This is it — the moment weʼve been waiting for,” Garlinghouse wrote. “The SEC will drop its appeal — a resounding victory for Ripple, for crypto, every way you look at it.”