Robinhood recently expanded its services to Hawaii, Puerto Rico, and the U.S. Virgin Islands following a regulatory change by Hawaii’s Department of Commerce and Consumer Affairs (DCCA). The Hawaiian regulator announced on June 28 that cryptocurrency services no longer required a money transmitter license to operate in the state, marking a significant win for the industry given Hawaii’s stringent financial regulations, comparable to California and New York.
Additionally, Robinhood is exploring the possibility of utilizing Bitstamp’s regulatory licenses to offer crypto futures trading to customers in the U.S. and Europe, according to a recent Bloomberg article. The brokerage platform had agreed to acquire Bitstamp for $200 million in order to provide institutional client services, a deal that is set to close in 2025.
Robinhood’s expansion and foray into crypto futures trading comes as a response to increased client demand for crypto products. Despite its popularity for commission-free trading and user-friendly interface, the platform faced controversy over allegations of market manipulation during the 2021 meme craze, which saw stocks like GameStop and AMC skyrocketing due to social media-fueled investor interest.
Investors in a 2021 lawsuit accused Robinhood of limiting access to meme stocks at the peak of the frenzy, resulting in significant losses. While Robinhood cited trading limits as necessary to protect users and the platform from heightened volatility, it has recently been nearing a settlement with the plaintiffs, although the specific details remain undisclosed.
In a related development, the magazine addresses the misconception surrounding ‘Bitcoin Layer 2s,’ explaining why this distinction matters in the cryptocurrency space.