Robinhood is having its public listing plans pushed back, after it had initially planned to launch the IPO in June. The U.S. SEC is reportedly looking into its cryptocurrency business.

Trading platform Robinhood is having trouble with the launch of its Initial Public Offering (IPO), according to a report from Bloomberg. The company was looking to launch the IPO in June, but discussions with the U.S. Securities and Exchange Commission have hampered progress, according to sources that spoke to the publication.

The SEC has been reviewing the company’s IPO prospectus, and the concerns reportedly have to do with the cryptocurrency business. This is unsurprising, given how intensely the U.S. government is now reviewing the cryptocurrency market.

The company will still go ahead with its public listing, only that it will be delayed to an unspecified date. Bloomberg’s sources said that the listing may come this summer, but that it could also be pushed back to autumn. The company will reveal its financial details and go public when the SEC completes its review.

Robinhood’s cryptocurrency offerings have made it a prime target for regulators, given its popularity. In more recent months, that scrutiny has extended to retail investors, who grew aggrieved over how it handled trading during the GameStop short selling incident.

However, Coinbase has managed a direct listing, so it doesn’t seem to be the case that the authorities are unduly targeting cryptocurrency businesses. Robinhood, despite the incidents it has experienced, remains popular with the public, especially young investors.

The market volatility and concerns about illicit activity that could potentially be funded by cryptocurrencies have led to a global movement towards regulation. The U.S. has only just begun this process, but it has done so with a great deal of energy.

The U.S. SEC, led by Gary Gensler, will be at the heart of many regulatory decisions this year. Gensler, who has taught about bitcoin and blockchain at MIT, is someone who is very familiar with the technology. Crypto insiders and enthusiasts were hopeful following his nomination and approval as SEC Chairman.

However, it will not all be rosy, as Gensler has said that there will have to be restrictions in place to proctor investors and prevent fraud. He has alluded to the creation of new laws this year, though nothing concrete has been suggested yet.

The SEC is primarily concerned with investor protection, market manipulation, and fraud, and will likely pass laws to that effect. The regulatory body will be guided by other officials, including U.S. Treasury Secretary Janet Yellen. This all forms a part of the Biden administration’s reported plan to regulate the cryptocurrency market.

Consequently, the crypto market could be in for a wilder ride this year. As other countries also step up their regulation game, the market may have some bitter medicine that will be good for it in the long run.

The post Robinhood IPO Plans Pushed Back Due to SEC Review Process appeared first on BeInCrypto.

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