TLDR
- Florida Probes Robinhood Crypto Over “Lowest Cost” Trading Claims
- Robinhood Faces Heat as Florida Targets Crypto Pricing Practices
- Regulators Eye Robinhood’s Crypto Fees, PFOF Under Fire Again
- Robinhood Crypto Under Scrutiny for Misleading Pricing Promos
- HOOD Slips After-Hours as Florida Launches Crypto Cost Probe
Robinhood Markets, Inc. (HOOD) closed at $98.70 with a 4.40% gain on the day. However, the momentum faded as the stock dipped 1.27% to $97.45 during after-hours trading. This shift follows a new investigation by Florida into Robinhood’s cryptocurrency pricing and marketing practices.
Robinhood Markets, Inc. (HOOD)
Florida’s Attorney General has launched a formal probe into Robinhood Crypto, LLC for allegedly misleading users about trading costs. The state issued a subpoena demanding internal documents that support the company’s claim of offering the lowest crypto trading costs. This comes as Florida intensifies scrutiny of financial services claiming cost advantages over competitors.
Robinhood’s pricing strategy faces new legal pressure, with the focus now on its use of payment for order flow (PFOF). The state wants to examine whether this practice results in higher costs for users despite the platform’s commission-free model. Officials aim to determine whether Robinhood’s marketing aligns with the true cost structure behind its crypto trades.
Florida Targets Crypto Claims of “Lowest Cost”
Florida’s Attorney General accused Robinhood Crypto of falsely promoting its platform as the cheapest way to trade digital assets. Authorities argue that the firm’s messaging may violate the state’s Deceptive and Unfair Trade Practices Act. The subpoena seeks proof behind claims like “get the most crypto for your money.”
Florida’s Attorney General is investigating Robinhood’s ( $HOOD) crypto trading promotions. pic.twitter.com/NN9d2G6Xw1
— StockMarket.News (@_Investinq) July 10, 2025
The state wants records on Robinhood’s marketing campaigns, especially those shared on social media and search engines. Officials are requesting details on the employees responsible for advertising and pricing decisions. They also demand documentation on all user-facing disclosures regarding fees, commissions, and trading practices.
Florida also seeks information about Robinhood’s crypto market-making partners and the nature of its agreements. The request includes all policies related to PFOF, rebate practices and price execution standards. Regulators aim to evaluate whether users unknowingly receive less favorable pricing compared to rival platforms.
“Our disclosures are best-in-class — We disclose pricing information to customers during the lifecycle of a trade that clearly outlines the spread or the fees associated with the transaction and the revenue Robinhood receives. We are proud to be a place where customers can trade crypto at the lowest cost on average.” – Lucas Moskowitz, General Counsel, Robinhood Markets, Inc.
PFOF Practices in Focus as Probe Widens
Robinhood’s business model centers on routing customer orders to third-party firms who pay for order flow. While this setup enables commission-free trading, it may also impact the fairness and transparency of crypto pricing. Florida wants to investigate whether this structure disadvantages users trading digital assets.
The state has requested Robinhood’s internal communications, particularly those addressing fee transparency and PFOF agreements with market makers. Officials also want data on all 2024 cryptocurrency transactions involving Florida-based users. They are seeking information on any sale or sharing of user trading data.
Florida’s inquiry reflects growing regulatory interest in the hidden costs behind free trading platforms. The SEC recently implemented rules requiring brokers to provide more pricing and execution transparency. Robinhood now faces both state and federal attention over its crypto trading practices.
