At the hearings, Robinhood will need to lay out its case before skeptical lawmakers. The company, which was founded in 2013, has argued that its decision to curtail trading of GameStop stock was done in the best interest of its customers at a time when it’s struggling to keep up with rapid growth.
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“Robinhood appears to have a credible, objectively verifiable explanation for why it did what it did,” said David Slovick, a partner at Barnes & Thornburg and who was senior enforcement attorney at the Securities and Exchange Commission (SEC) from 2000 to 2004.
Tenev’s performance at the hearing, and Robinhood’s fight to quell the backlash, will pose the biggest challenge yet for its recently expanded D.C. team.