Robinhood’s 2025 Rally Faces Pressure as Crypto Backlash and New Costs Emerge

Robinhood's stock has surged 161% in 2025, riding the wave of crypto market momentum and retail investor enthusiasm. The rally now faces headwinds as JPMorgan's reported plan to charge fintech firms for bank data access threatens to squeeze Robinhood's razor-thin margins. While the platform maintained gains when competitors like PayPal and Affirm fell 6%, its intraday pullback revealed underlying fragility.

Regulatory scrutiny intensifies as Florida's Attorney General alleges deceptive practices around payment for order flow. "We believe those representations were deceptive," stated James Uthmeier, citing concerns about trade execution quality. Robinhood Crypto's Lucas Moskowitz countered that the platform provides "best-in-class" disclosures, detailing spreads and fees throughout the trade lifecycle.