Robinhood Registers in-House Lobbyists Amid Scrutiny over Recent Trading Restrictions
Trading app platform Robinhood, which has been at the center of the market volatility saga of the past few weeks, registered its in-house team last week to start lobbying.
Some bills Robinhood plans to lobby, such as a trading tax, could negatively impact its revenue model of profiting off of customer trades, according to CNBC.
One of the bills Robinhood plans to focus on is the Wall Street Tax Act of 2019, introduced two years ago with the goal of imposing a 0.1% excise tax on certain financial transactions, including the purchase of stocks, bonds and derivatives, according to CNBC.
In 2020, Robinhood spent $275,000 on lobbying efforts and hired four companies, including Blue Ridge Law & Policy, the Daly Consulting Group, Thorn Run Partners and the Williams Group, according to data from OpenSecrets.gov.
The lobbyists that Robinhood added include Beth Zorc, a former Housing and Urban Development attorney and senior staffer on the Senate Banking and House Financial Services committees, and Lucas Moskowitz, who served as chief of staff to former SEC Chair Jay Clayton. Zorc and Moskowitz will lobby on various bills relating to financial transaction taxes, according to Politico.
The company is facing increasing scrutiny from regulators and a slew of lawsuits following the trading frenzy tied to GameStop and AMC.
Treasury Secretary Janet Yellen met with the heads of the Securities and Exchange Commission, the Federal Reserve, the Federal Reserve Bank of New York and the Commodity Futures Trading Commission last week, to “make sure that our financial markets are functioning properly, efficiently and that investors are protected.”
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