Robinhood Tanks After SEC Chair says “Banning payment for order flow is possible”.

• Securities and Exchange Commission Chairman Gary Gensler told Barron’s that banning the controversial practice of payment for order flow is “on the table.”
• Robinhood has said that if the PFOF model changed, the brokerage and the industry would be able to adapt.
• Shares of Robinhood were already lower on Monday after CNBC reported that PayPal is exploring ways to let users trade individual stocks.

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

Robinhood’s stock fell 6.9% to $43.64 per share 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.”

https://www.cnbc.com/2021/08/30/robinhood-tanks-after-sec-chair-tells-barrons-banning-payment-for-order-flow-is-a-possibility-.html