Next audition for GameStop Debacle
The United States House Committee on Financial Services will hold a second hearing on the Wall Street trade debacle that involved GameStop, Reddit, Robinhood and hedge fund traders, Insider Crowdfund reported Friday (February 26).
The virtual hearing will take place on March 17 and the final details on who will testify will be made public a week before the hearing. Representative Maxine Waters, chair of the committee, had said there would be three separate hearings into the business incident that rocked Wall Street and caused heavy losses for hedge funds.
The second hearing is expected to call industry experts to testify. The third hearing could result in final opinions on what happened and whether new legislation is needed, the outlet said.
Robin Hood CEO Vlad Tenev testified at the first hearing and expressed regret for placing trading restrictions on GameStop shares. He argued, however, that this was a necessary response to meet the clearinghouse’s demands.
Other witnesses to the first hearing included hedge fund managers, Reddit CEO Steve Huffman and a Reddit user from the platform’s WallStreetBets community. WallStreetBets users would have played a major role in the management of GameStop stock.
So far this year Robinhood has added 6 million new users for its cryptocurrency services. Bitcoin has reached record highs, surpassing $ 58,000 with a market cap of over $ 1 trillion. The cryptocurrency dogecoin also saw values rise during Gamestop’s trading frenzy.