The U.S. Securities and Exchange Commission (SEC) has reportedly slowed down Robinhood's listing plans due to the company's crypto business.
Bloomberg reported the news on Friday, citing anonymous sources familiar with the matter. One of which said the SEC is questioning Robinhood about its growing cryptocurrency business.
California-based Robinhood offers trading in stocks, exchange-traded funds, and crypto. The online brokerage launched its crypto business in 2018 and saw nearly 10 million customers trade crypto on its platform during the first quarter of this year. Robinhood supports trading in several cryptocurrencies, including bitcoin, ether, and dogecoin.
Robinhood CEO Vlad Tenev recently said that the company plans to hire a "ton" of people for its cryptocurrency operations, given the substantial interest from customers.
Robinhood initially planned to hold an initial public offering (IPO) this month, which was then postponed to July. Now the regulatory scrutiny could push back the event as far as this fall, one source told Bloomberg.