Robinhood Up 160% in 2025, But May Face Obstacles (cnbc.com)
(Saturday July 12, 2025 @05:34PM (EditorDavid)
from the taking-stock dept.)
- Reference: 0178362420
- News link: https://news.slashdot.org/story/25/07/12/1559255/robinhood-up-160-in-2025-but-may-face-obstacles
- Source link: https://www.cnbc.com/2025/07/11/robinhood-florida-tokens-staking.html
Robinhood's stock hit is up more than 160% for 2025, [1]reports CNBC , and the trading platform's own stock hit an all-time high on Friday. But "Despite its stellar year, the online broker is facing several headwinds..."
> Florida Attorney General James Uthmeier [2]opened a formal investigation into Robinhood Crypto on Thursday, alleging the platform misled users by claiming to offer the lowest-cost crypto trading. "Robinhood has long claimed to be the best bargain, but we believe those representations were deceptive," Uthmeier said in a statement. The probe centers on Robinhood's use of payment for order flow — a common practice where market makers pay to execute trades — which the AG said can result in worse pricing for customers.
>
> Robinhood is also facing opposition to a new 25% cut of staking rewards for U.S. users, set to begin October 1. In Europe, the platform will take a smaller 15% cut. Staking allows crypto holders to earn yield by locking up their tokens to help secure blockchain networks like ethereum, but platforms often take a percentage of those rewards as commission. Robinhood's 25% cut puts it in line with Coinbase, which charges between 25.25% and 35% depending on the token. The cut is notably higher than Gemini's flat 15% fee. It marks a shift for the company, which had previously steered clear of staking amid regulatory uncertainty...
>
> The company now offers blockchain-based assets in Europe that give users synthetic exposure to private firms like OpenAI and SpaceX through special purpose vehicles, or SPVs. An SPV is a separate entity that acquires shares in a company. Users then buy tokens of the SPV and don't have shareholder privileges or voting rights directly in the company. OpenAI has publicly objected, warning the tokens do not represent real equity and were issued without its approval... "What's important is that retail customers have an opportunity to get exposure to this asset," [Robinhood CEO Vlad Tenev [3]said in an interview with CNBC, pointing to the disruptive nature of AI and the historically limited access to pre-IPO companies. "It is true that these are not technically equity," Tenev added, noting that institutional investors often gain similar exposure through structured financial instruments...
>
> Despite the regulatory noise, many investors remain focused on Robinhood's upside, and particularly the political tailwinds.
[1] https://www.cnbc.com/2025/07/11/robinhood-florida-tokens-staking.html
[2] https://www.myfloridalegal.com/newsrelease/attorney-general-james-uthmeier-fights-florida-crypto-investors-launches-investigation
[3] https://www.cnbc.com/2025/07/08/robinhood-ceo-downplays-openai-concerns-on-tokenized-stock-structure.html
> Florida Attorney General James Uthmeier [2]opened a formal investigation into Robinhood Crypto on Thursday, alleging the platform misled users by claiming to offer the lowest-cost crypto trading. "Robinhood has long claimed to be the best bargain, but we believe those representations were deceptive," Uthmeier said in a statement. The probe centers on Robinhood's use of payment for order flow — a common practice where market makers pay to execute trades — which the AG said can result in worse pricing for customers.
>
> Robinhood is also facing opposition to a new 25% cut of staking rewards for U.S. users, set to begin October 1. In Europe, the platform will take a smaller 15% cut. Staking allows crypto holders to earn yield by locking up their tokens to help secure blockchain networks like ethereum, but platforms often take a percentage of those rewards as commission. Robinhood's 25% cut puts it in line with Coinbase, which charges between 25.25% and 35% depending on the token. The cut is notably higher than Gemini's flat 15% fee. It marks a shift for the company, which had previously steered clear of staking amid regulatory uncertainty...
>
> The company now offers blockchain-based assets in Europe that give users synthetic exposure to private firms like OpenAI and SpaceX through special purpose vehicles, or SPVs. An SPV is a separate entity that acquires shares in a company. Users then buy tokens of the SPV and don't have shareholder privileges or voting rights directly in the company. OpenAI has publicly objected, warning the tokens do not represent real equity and were issued without its approval... "What's important is that retail customers have an opportunity to get exposure to this asset," [Robinhood CEO Vlad Tenev [3]said in an interview with CNBC, pointing to the disruptive nature of AI and the historically limited access to pre-IPO companies. "It is true that these are not technically equity," Tenev added, noting that institutional investors often gain similar exposure through structured financial instruments...
>
> Despite the regulatory noise, many investors remain focused on Robinhood's upside, and particularly the political tailwinds.
[1] https://www.cnbc.com/2025/07/11/robinhood-florida-tokens-staking.html
[2] https://www.myfloridalegal.com/newsrelease/attorney-general-james-uthmeier-fights-florida-crypto-investors-launches-investigation
[3] https://www.cnbc.com/2025/07/08/robinhood-ceo-downplays-openai-concerns-on-tokenized-stock-structure.html
Robinhood = predatory, sketchy and legal. (Score:2)
by hdyoung ( 5182939 )
Robinhood charges stupidly low fees for stock purchases. But they make it up by manipulating the timing of the buy/sell actions, which raises costs for the customer and puts $ in Robnhoods pocket, but it’s invisible to an unsophisticated investor. Which is pretty much Robinhoods entire customer base. From a regulatory perspective, I think the consensus is that its nasty but legal.
Now they’re linking further with crypto? Well, it doesnt affect me. I wasnt using Robinhood before and the abilit
Nobody (Score:2)
has *ever* been wrong, even once, in the totality of history, by investing in actual and tangible precious metals.