Yahoo EntertainmentAOC, Ted Cruz, and More Agree That Robinhood's Decision to Block GameStop, AMC Trades Is 'Unacceptable'
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The Robinhood controversy is showing zero signs of coming to an end any time soon.
Early Thursday afternoon, Rep. Alexandria Ocasio-Cortez—a member of the U.S. House Committee on Financial Services—weighed in amid the criticism of the app for restricting transactions for certain securities.
"This is unacceptable," AOC said in a tweet, as seen below. "We now need to know more about [the Robin Hood app's] decision to block retail investors from purchasing stock while hedge funds are freely able to trade the stock as they see fit."
AOC added that, as a member of the Financial Services team, she would support a hearing on this matter "if necessary."
This is unacceptable.
We now need to know more about @RobinhoodApp’s decision to block retail investors from purchasing stock while hedge funds are freely able to trade the stock as they see fit.
As a member of the Financial Services Cmte, I’d support a hearing if necessary. https://t.co/4Qyrolgzyt— Alexandria Ocasio-Cortez (@AOC) January 28, 2021
Inquiries into freezes should not be limited solely to Robinhood.
This is a serious matter. Committee investigators should examine any retail services freezing stock purchases in the course of potential investigations - especially those allowing sales, but freezing purchases.— Alexandria Ocasio-Cortez (@AOC) January 28, 2021
Surprising some, AOC's take on the still-in-progress controversy (which began with a Reddit-inspired GameStop initiative) received a co-sign from MAGA-aligned Republican (and recent subject of repeated roastings from Seth Rogen) Ted Cruz.
"Fully agree," Cruz said when quoting AOC's original tweet.
Cruz, in fact, isn't the only usually-off-base Republican to have criticized the Robinhood team.
"In light of recent volatility, we are restricting transactions for certain securities to position closing only, including $AAL, $AMC, $BB, $BBY, $CTRM, $EXPR, $GME, $KOSS, $NAKD, $NOK, $SNDL, $TR, and $TRVG," a Robinhood rep announced on Thursday to immediate criticism across social media. "We also raised margin requirements for certain securities."
GameStop ($GME), per CNBC, was down 20 percent from Wednesday's closing price roughly two hours after Robinhood’s announcement. By midday Thursday, GameStop's shares were down 50 percent.
This story is being updated.