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Robinhood Faces Ban in Massachusetts That Will Affect ‘Millions’

  • Brokerage files for preliminary injunction to prevent case
  • Company says Massachusetts’ new rule doesn’t apply to it
Bloomberg business news
Robinhood App Faces Potential Ban in Massachusetts

The Massachusetts securities regulator is seeking to revoke Robinhood Markets’ license in the state, a move that the brokerage firm says could prevent “millions” from accessing its service.

William Galvin, the head of the state’s securities division, said in an administrative complaint that Robinhood has “continued a pattern of aggressively inducing and enticing trading among its customers -- including Massachusetts customers with little or no investment experience.”