Robinhood is once again under regulatory fire, as the Florida Attorney General’s office has launched a fresh investigation into the trading platform’s cryptocurrency business. This new probe comes just days after a separate inquiry in Europe, adding to the growing scrutiny surrounding the company.
In a press release issued Thursday, Florida AG James Uthmeier announced that the investigation centers on allegations that Robinhood misled users through deceptive marketing. Specifically, the company is accused of falsely advertising itself as the “least expensive way to purchase crypto,” despite practices that may have resulted in higher overall costs for customers.
At the heart of the inquiry is Robinhood’s payment-for-order-flow (PFOF) model, which allows users to trade without direct fees by routing orders to third-party market makers. These firms pay Robinhood to execute trades, a system that can obscure true trading costs. The AG’s office contends this model may lead to less favorable prices for users compared to platforms offering transparent, all-inclusive pricing.
“Robinhood has long claimed to offer the best deal, but we believe those claims were misleading,” said Uthmeier. He stressed that retail investors deserve full transparency when buying and selling digital assets. He also emphasized the importance of crypto to Florida’s financial future, framing the enforcement effort as aligned with former President Trump’s broader strategy to strengthen the U.S. crypto market.
As part of the investigation, Robinhood has been subpoenaed to hand over marketing materials, internal communications, pricing data, customer disclosures, and employee records tied to its crypto operations in Florida. The company has until July 31 to comply.
This latest probe marks Robinhood’s second major regulatory challenge in just over a week. On July 7, 2025, European regulators opened an investigation into the company’s tokenized stock offerings, following backlash from firms like OpenAI, which denied giving Robinhood permission to list their shares in tokenized form.
In response, Robinhood CEO Vlad Tenev defended the firm’s tokenization initiative, calling it a step toward democratizing access to private equity markets. He also reaffirmed the company’s commitment to regulatory compliance, citing active dialogues with authorities in the U.S. and abroad as it seeks to scale its new product offerings.
Still, with regulators closing in on multiple fronts, Robinhood’s ambitions for crypto and tokenized assets may face significant roadblocks ahead.
