Congressional hearings aren't exactly known for fact-finding and informed inquiry, but we just got a bunch of really good questions directed at Robinhood executives.
From Congresswoman Nydia Velazquez:
-- "Robinhood seems to have perfected the gamification of trading providing the user with the perception that investing through the Robinhood app offers recreational gain ... with no downside risk. ... How does Robinhood balance disclosures about the potential downside risk of investing, including substantial downside loss?"
Vlad Tenev's response: "We know that investing is serious and we're investing in all the educational tools and support to help people on their investing journey."
From Congressman Blaine Luetkemeyer:
-- "Do you think we need more legislation or did the system actually work? Was it self-correcting? The fact that someone like yourself was able to take advantage of shorting? Maybe there was over-aggressive investing that was taking place ... they didn't work because you outsmarted the system?"
Keith Gill's response: "Increased transparency could help so someone like me could have a better understanding of how those things work could be quite beneficial to retail investors."
-- "You mentioned settling trades in real time ... What are the unintended consequences if you did something like that?"
Tenev's response: "Certain market participants rely on next-day settlement to be able to take advantage of intraday netting and run up larger one-sided positions in certain stock with the knowledge they can close those positions by the time settlements happen, and I understand that could be a limitation to some of these institutions. ... I don't think these are insurmountable challenges."