CryptoRobinhood Eyes Crypto Futures with Bitstamp Acquisition

Robinhood Eyes Crypto Futures with Bitstamp Acquisition

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.

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Andrew
Andrew
Self-taught investor with over 5 years of financial trading experience Author of numerous articles for hedge funds with over $5 billion in cumulative AUM and Worked with several global financial institutions. After finding success using his financial acumen to build an investment portfolio, Andrew began writing and editing articles about the cryptocurrency space for sites such as chaincryptocoins.com, ensuring readers were kept up to date on hot topics such as Bitcoin and The latest news on digital currencies and Ethereum.

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