Florida Launches Probe Into Robinhood – Regulatory Storm Brews for Trading App

Florida turns up the heat on Robinhood as state investigators target the commission-free trading platform. The probe could rattle retail investors already nursing crypto winter wounds.

Zero-fee doesn’t mean zero-risk—as users learned when meme stocks and Dogecoin mania went sideways. Now regulators are digging into whether the app’s gamified interface crossed legal lines.

Robinhood’s legal team braces for another round of scrutiny, while Wall Street veterans smirk at the ‘democratized finance’ startup facing the same old regulatory music. Some things never change—even in fintech.

Robinhood’s shares are up 150 percent this year

Robinhood shares have soared roughly 150 percent so far this year. The jump reflects strong trading volumes from retail customers and hopes that regulated cryptocurrencies will drive fresh investor interest. 

About 1/5 of the stock’s gain followed an event in southern France, where co-founder and CEO Vlad Tenev introduced new crypto features and distributed $1 million in tokens tied to SpaxeX and OpenAI.

An S&P Capital IQ poll sees Robinhood’s earnings per share growing at about 10 percent annually through 2028. While positive, that pace is modest compared with the company’s lofty share price. 

Robinhood has recorded net profits in only one year since its public listing, making future income predictions difficult, especially given the volatile nature of the crypto market and shifting policy under President Trump.

If earnings do rise as predicted, Robinhood’s shares WOULD trade at roughly 56 times its projected 2028 profits. By comparison, Interactive Brokers, a direct competitor, has a higher valuation, and Charles Schwab has a value of 14 times. To match Interactive Brokers’ valuation, Robinhood will require double the expected earnings over the next three years.

Cryptopolitan Academy: Want to grow your money in 2025? Learn how to do it with DeFi in our upcoming webclass. Save Your Spot