Analysis-Will the games stop? SEC mulls crackdown on trading apps

Published by
Reuters

By Katanga Johnson WASHINGTON (Reuters) – A year after the “meme stock” rally humbled hedge funds and roiled Wall Street, U.S. regulators are studying ways to crack down on psychological prompts used by Robinhood Inc and other commission-free brokers to promote frequent stock trading on smartphone apps. The Securities and Exchange Commission (SEC) started scrutinizing commission-free brokers like Robinhood, Webull Financial LLC and SoFi Inc last year after retail investors drove GameStop and other “meme stocks” sky high in Jan. 2021. The furious rally pushed GameStop shares up more than 1,500%…

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