Robinhood tanks after SEC chair tells Barron’s banning payment for order flow is a possibility


Vlad Tenev, CEO and co-founder Robinhood Markets, Inc., is displayed on a screen during his company’s IPO at the Nasdaq Market site in Times Square in New York City, U.S., July 29, 2021.
Brendan McDermid | Reuters


Shares of Robinhood dropped on Monday amid several bouts of bad news for the brokerage app.

Robinhood’s stock fell to about 8% lower on the day after Securities and Exchange Commission Chairman Gary Gensler told Barron’s that banning the controversial practice of payment for order flow is “on the table.”

Gensler told the outlet that payment for order flow — the back end payment brokerages receive from market makers to execute trades —has “an inherent conflict of interest.”

Shares of Robinhood were already lower on Monday after CNBC reported that PayPal is exploring ways to let users trade individual stocks. The SEC did not immediately respond to CNBC’s request for comment.

Click here to read the full Barron’s report.