Friday, August 1, 2025

Latest

SEC Chair Gary Gensler Opens Inquiry Into Gamification Features Used by Retail Trading Apps

The SEC has requested the public’s opinion on the “gamification” of stock trading, amid rising concerns that some online apps such as Robinhood are nudging retail investors to take on risks that may not be fully disclosed.

On Friday, the SEC issued a press release calling on the public to provide their opinion on the persuasive features that some discount brokerage platforms use to keep users engaged in trading. According to SEC Chair Gary Gensler, the tactics could be be classified as stock market recommendations, which would be subject to more stringent regulation. “In many cases, these features may encourage investors to trade more often, invest in different products or change their investment strategy,” Gensler said.

“In the last few years, we’ve seen new brokerage apps, wealth management apps that give us investing advice, along with robo-advising,” Gensler explained in a separate video on his Twitter account. “While these new technologies can bring us greater access and product choice, they also raise questions as to whether we as investors are appropriately protected when we trade and get financial advice.”

The latest request for the public’s opinion marks the first milestone in what could be significantly tighter controls of digital trading apps, many of which have faced heightened scrutiny following a historic rally in meme stocks such as GameStop and AMC. Robinhood in particular, has come under fire by regulators over its use of gamification nudges, such as emojis and confetti whenever users complete trades.

Information for this briefing was found via the SEC. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Why Gold’s Bull Run May Just Be Getting Started! | Peter Grandich

Tariffs Spark New Race for Critical Metals | Rob McEwen

Antimony Resources: The Bald Hill Project

Recommended

Tsunami Warnings Spread As Largest Quake Since 2011 Hits Russia

Northern Superior Intersects 1.75 g/t Gold Over 65.0 Metres At Philibert

Related News

SEC Probes Major Equity Funds Over Employees’ Use of Personal Electronic Communications

US regulators are probing major Wall Street firms over how they track employees’ digital communications...

Wednesday, November 9, 2022, 01:18:22 PM

Republican States Sue SEC Over Crypto Enforcement Powers

18 Republican state attorneys general filed suit Thursday against the Securities and Exchange Commission, challenging...

Friday, November 15, 2024, 07:28:51 AM

SEC Charges Three individuals With Insider Trading Related to 2017 Equifax Data Breach

The SEC has laid charges against three individuals for illegally trading Equifax (NYSE: EFX) shares...

Saturday, August 20, 2022, 03:14:00 PM

SEC Counters Binance’s Legal Defense: “Lacking Support In The Law”

In response to Binance’s attempt to dismiss a lawsuit filed by the U.S. Securities and...

Thursday, November 9, 2023, 12:36:00 PM

SEC Probes Ryan Cohen’s Bed Bath & Beyond Shares Sale Amid Meme Stock Craze

The Securities and Exchange Commission (SEC) is currently investigating the ownership and unexpected sale of...

Friday, September 8, 2023, 11:29:36 AM