As reported by outlets like Reuters, the U.S. Securities and Exchange Commission (SEC) has been probing Robinhood (HOOD) since October 2021 in regards to its compliance with short selling rules.
With the arrival of this year’s second quarter, Robinhood recently shared that it had received additional requests from the SEC in regards to the aforementioned short selling, adherence to Regulation SHO, and the company’s compliance with trade reporting requirements “in connection with securities and fractional share lending.”
The reminder that the SEC is still looking into Robinhood follows recent news of the company being fined $30 million by the New York State Department of Financial Services over accusations that the firm violated “anti-money-laundering and cybersecurity rules,” as noted by Bloomberg.
Also pointed out by Bloomberg is how the SEC previously fined Robinhood $65 million back in 2020 for “misleading its customers about a key source of revenue, called payment for order flow.” Adding to all of this, as outlined in a press release on August 2, Robinhood is also laying off a sizable percentage of its staff with 23 percent of employees to be affected across all areas, though the company also specifies that it's primarily targeting “operations, marketing, and program management functions.”
Overall, it’ll be interesting to see what comes of the SEC probe into Robinhood, and how the company will fare moving forward given the circumstances. For more on how Robinhood is faring these days, be sure to read through some of our previous coverage including more on how Robinhood (HOOD) is planning to lay off 23 percent of its staff.