With Democrats in control of Congress, the GameStop controversy may create changes to stock regulations,
Fallout continues over Wall Street's woes with GameStop. Simply put, several people on Reddit decided to band together when they heard big time traders were betting against the company, earning them a big monetary win.
New York Democratic Congresswoman Alexandria Ocasio-Cortez says investing apps started blocking retail investors from purchasing stock but allowed large hedge funds to freely trade. As a member of the Financial Service Committee, AOC says she'd support a hearing if it was necessary.
Both Senate and House committees are planning on holding hearings that focus on the actions of Robinhood, the stock app that froze GameStop trading and that of other stocks targeted by the Reddit group. The issue is, while small players were blocked from trades, large hedge funds weren’t.
Source: CBS News