Overview

• Florida Attorney General James Uthmeier launched an investigation on July 10 under the state’s Deceptive and Unfair Trade Practices Act.
• The AG’s office issued a subpoena requiring Robinhood Crypto to provide documents on pricing models, competitor comparisons, marketing materials and user trade data by July 31.
• The probe scrutinizes Robinhood’s payment for order flow system that funds commission-free trading through payments from market makers.
• Florida regulators allege that users may pay higher overall costs on Robinhood’s platform despite its “lowest cost on average” claims.
• Robinhood Crypto says it discloses spreads and fees throughout the trade process and maintains it offers the lowest average crypto trading costs.