On July 11, PANews reported that the Florida Attorney General's Office is investigating Robinhood's cryptocurrency business, accusing the platform of using deceptive practices to mislead consumers regarding cost information. The investigation focuses on whether its payment for order flow (PFOF) model leads to opaque pricing for cryptocurrency transactions. Attorney General James Uthmeier stated that Robinhood has long claimed to offer the best cryptocurrency trading services, but may actually mislead consumers. Investigators have issued a subpoena to the company, requiring it to submit marketing materials and internal documents related to pricing structures by the end of July. Robinhood's general counsel responded that the company's trading disclosure standards are industry-leading and that all fee information is clearly disclosed during the trading process.
This investigation will examine whether Robinhood's business model of executing trades through third-party institutions and charging order flow fees affects the fairness of cryptocurrency asset trading. The U.S. Securities and Exchange Commission introduced new rules last year requiring brokers to enhance the disclosure of trading execution information, including payment for order flow.