Robinhood, the trading platform famously linked to the 2021 GameStop meme stock frenzy, is reportedly set to enter the crypto futures market in America and Europe. According to a recent Bloomberg report, the firm is nearing a $200 million acquisition of Bitstamp, one of the oldest crypto exchanges globally.
The acquisition, expected to be finalized by next year pending regulatory approval, would grant Robinhood access to Bitstamp’s licenses for crypto futures. This move aligns with Robinhood’s strategy to expand its offerings, including launching CME-based futures for bitcoin and ethereum in the United States.
Earlier this year, Robinhood acquired Marex FCM, securing additional U.S. futures licenses in a strategic move to bolster its market position.
Despite these expansions, Robinhood faces regulatory challenges. The U.S. Securities and Exchange Commission (SEC) issued a Wells Notice to Robinhood, indicating potential civil enforcement actions related to alleged securities violations within its crypto division. While no lawsuit has yet materialized, Robinhood has a history with the SEC, having been charged in 2020 for misleading customers.
Bitstamp’s robust regulatory compliance record, highlighted by its proactive stance on halting trading of SEC-labeled “unregistered securities” last year, makes it an attractive acquisition target for Robinhood. Future developments will clarify how this acquisition shapes Robinhood’s crypto strategy amidst regulatory scrutiny.
Related Topics:
