Capital Gain

Next Hearing Set For GameStop Debacle

Published: in FINTECH by .


The U.S. House Committee on Financial Services will hold a second hearing on the Wall Street trading debacle that involved GameStop, Reddit, Robinhood and hedge fund traders, Crowdfund Insider reported on Friday (Feb. 26).

The virtual hearing will take place on March 17 and final details about who is testifying will be made public a week before the hearing. Rep. Maxine Waters, chairwoman of the committee, had said there will be three separate hearings about the trading incident that rocked Wall Street and caused big losses for hedge funds.

The second hearing is anticipated to call industry experts to testify. The third hearing could result in final opinions about what happened and if new legislation is necessary, the news outlet indicated. 

Robinhood CEO Vlad Tenev testified at the first hearing and expressed regret for placing trading restrictions on GameStop stock. He maintained, however, that it was a necessary response to meet clearinghouse demands. 

The other witnesses at the first hearing included hedge fund chief executives, Reddit CEO Steve Huffman and a Reddit user from the platform’s community WallStreetBets. Users of WallStreetBets were said to have played a major role in running up GameStop stock. 

So far this year Robinhood added 6 million new users for its cryptocurrency services. Bitcoin hit record highs, topping $58,000 with a market capitalization of over $1 trillion. The cryptocurrency dogecoin also saw values escalate during the Gamestop trading frenzy.

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