Reed: GameStop Stock Frenzy & Trading Freeze Highlight Need for Stronger Wall Street Oversight & Increased Transparency

Press Release

In the wake of a volatile week on Wall Street that saw platforms, such as the trading app Robinhood, temporarily blocking further stock purchases, the Senate Committee on Banking, Housing, and Urban Affairs will hold an upcoming hearing to examine the current state of the stock market.

U.S. Senator Jack Reed (D-RI), a senior member of the Banking Committee, says an in-depth hearing, or series of hearings, is required to examine the market dynamics that fueled this most recent incident, while also looking closer at whether the system is appropriately protecting retail investors and if additional measures are needed.

Reed stated: "The headlines are all about GameStop and the Reddit-fueled rally, but this incident raises much broader questions about whether securities markets and market infrastructure are functioning properly and whether the right regulations and appropriate oversight are in place.

"There should not be one set of rules for big hedge funds and another set for average individual investors that disadvantage retail investors. We need fair rules that protect average Americans, including mom and pop investors, and the integrity of our securities markets.

"We need to drill down on the aspects of this incident to determine how and why trading restrictions were put in place, and who they impacted and were actually meant to protect, including intermediaries.

"I also want answers from regulators about their actions prior to and during this ordeal. The Securities and Exchange Commission has announced they are assessing the situation. Those assessments must be made public in a timely manner.

"We need a better understanding of the forces at work, implications for the future, and what Congress and regulators can do to ensure fairness and transparency in the stock market, especially for mom and pop investors."

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