There is no shortage of Robinhood headlines today, especially as CEO Vlad Tenev prepares to go before the House Committee on Financial Services. However, investors should also specifically pay attention to the latest Robinhood crypto news. What did the company announce? And what does it mean for its cryptocurrency customers?
To start, investors should make sure they understand the situation. As Tenev prepares to go before lawmakers as part of an effort to understand exactly what happened with the GameStop (NYSE:GME) rally, Robinhood also announced that it will work to allow crypto deposits and withdrawals.
With that in mind, here is what you need to know about the latest Robinhood crypto news:
- On Twitter (NYSE:TWTR) yesterday, Robinhood says it intends to “provide the ability to deposit and withdraw cryptocurrencies,” including Dogecoin (CCC:DOGE).
- The company also says that Robinhood Crypto does not invest in cryptocurrency or use customer cryptocurrencies for its own benefit.
- It appears that the thread of tweets is in response to growing calls for crypto transparency on the trading platform.
- Elon Musk is among social media users supporting those calls, which question a January move to halt crypto trading.
- Some also believe Robinhood is the largest holder of DOGE.
- Robinhood acknowledged this interest in transparency and said the community wants to know which addresses it owns.
- However, it said it will not share this information.
- Right now, customers can buy and sell certain cryptocurrencies through the Robinhood app. The list includes Bitcoin (CCC:BTC), Ethereum (CCC:ETH), Dogecoin, Litecoin (CCC:LTC), Ethereum Classic (CCC:ETC), Bitcoin SV (CCC:BSV) and Bitcoin Cash (CCC:BCH).
What to Know About the Robinhood Crypto News
On the surface, the Robinhood crypto news has large implications for customers. While seven cryptocurrencies are available to buy and sell, customers face limitations. Essentially, they can use fiat currencies like U.S. dollars to purchase tokens through the app. Then, if they want to sell, they have to cash back out to that initial currency. Where things stand, there are no options to transfer to personal wallets or directly deposit or withdraw the cryptos.
However, the news about deposit and withdrawal changes is also raising customer questions. While it should appeal to customers and raise its crypto legitimacy, others see it as a move to boost its reputation. Additionally, Robinhood has shared very little details about the plan. We know right now that integrations are underway, but we do not have a clear timeline. And investors should know that the tweets come in response to social media speculation. Some of the key points to the speculation include that Robinhood has promised such integrations in the past and lingering questions over who will have autonomy over digital wallets. Will customers have access to their crypto keys while using Robinhood?
And one of the biggest stories to watch? Musk and several other social media users are painting the case that Robinhood is the largest holder of DOGE. As we wait for these headlines to play out, the Robinhood crypto news looks extra interesting.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.