The 2021 GameStop Hearings
The House Financial Services Committee held hearings in February and March 2021 examining the GameStop trading episode. Witnesses included Kenneth Griffin (Citadel Securities), Vlad Tenev (Robinhood), and others. The hearings raised questions about PFOF, market structure, and the relationship between brokers and market makers, bringing these issues to national public attention.
Congressional Reports
The House Financial Services Committee published a staff report in June 2021 documenting findings from the GameStop investigation. The report raised concerns about PFOF, market maker conflicts, and the adequacy of retail investor protections, while finding no evidence of direct coordination between Robinhood and Citadel in the trading halt decision.
Legislative Proposals
Various members of Congress have introduced legislation related to PFOF and market structure, including proposals to tax PFOF, require order competition, and enhance disclosure requirements. To date, no major PFOF legislation has been enacted. Congressional interest in the issue has ebbed and flowed with market events and political priorities.
The Role of Political Spending in Congressional Engagement
Kenneth Griffin and Citadel Securities are documented significant contributors to members of Congress who sit on committees overseeing financial regulation. In The Ethics Reporter's view, the correlation between financial industry political spending and legislative outcomes on financial regulation is a legitimate subject of public scrutiny and accountability journalism.