Regulatory Outlook | 02.10.21
Robinhood-GameStop Saga Could Put Spotlight on DC, Wall Street Revolving Door
Robinhood has hired several former regulators in recent months, fueling a longstanding debate about the revolving door between Wall Street and the government. Of particular interest will be regulators’ lack of action in recent years in reforming market structure issues, including payment for order flow, as many of the former regulators responsible for such reforms are now working for firms in the industry that engage in and profit from the practice. Government watchdogs have long decried the practice of regulators leaving government to work for companies they once regulated, and Robinhood has been one of the most aggressive deployers of this tactic in recent months, hiring former SEC Commissioner Dan Gallagher to be its chief legal officer last May.
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