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Republican senator Ted Cruz and Democratic representative Alexandria Ocasio-Cortez are among the elected officials calling for Robinhood to explain its decision to suspend trading of Gamestop, AMC and other securities before Congress.
"We now need to know more about @RobinhoodApp's decision to block retail investors from purchasing stock while hedge funds are freely able to trade the stock as they see fit. As a member of the Financial Services Cmte, I'd support a hearing if necessary," Ocasio-Cortez wrote in a tweet. Cruz then agreed with Cortez in a tweet of his own. House Speaker Nancy Pelosi said that Congress would be scrutinizing Robinhood's move, as did President Biden's administration.
After days of skyrocketing value for Gamestop stock spurred by retail traders on the r/WallStreetBets subreddit, Robinhood and WeBull (a Chinese competitor) have now prohibited users from buying more of the stock, though some Robinhood users can still sell. By prohibiting users from purchasing more, Robinhood and other trading platforms have effectively put a temporary cap on Gamestop value in a move that has almost no historical precedent.
"We need more regulation and equity in the markets," California Rep. Ro Khanna wrote in a public statement condemning Robinhood's move.
Anna Kramer is a reporter at Protocol (@ anna_c_kramer), where she helps write and produce Source Code, Protocol's daily newsletter. Prior to joining the team, she covered tech and small business for the San Francisco Chronicle and privacy for Bloomberg Law. She is a recent graduate of Brown University, where she studied International Relations and Arabic and wrote her senior thesis about surveillance tools and technological development in the Middle East.