Florida Launches Probe Into Robinhood’s Crypto Pricing Claims

Robinhood Markets Inc. faces regulatory scrutiny as Florida's Attorney General opens an investigation into its cryptocurrency division. The probe focuses on whether Robinhood Crypto LLC misled users with claims of offering 'the lowest cost' trading, subpoenaing internal documents to verify pricing practices.

The platform's stock dipped 1.27% in after-hours trading following the announcement, erasing part of its 4.40% daily gain. Florida regulators are particularly examining Robinhood's payment-for-order-flow (PFOF) model, questioning if the commission-free structure ultimately results in higher costs for traders.

This marks another regulatory challenge for the trading platform, which has repeatedly faced scrutiny over its order routing practices. The outcome could impact how retail crypto platforms advertise execution costs across the industry.