The GameStop stock trading controversy has caught the attention of the U.S. Congress for a hearing. Both the House Financial Services Committee and the Senate Banking Committee have announced that there would be hearings on short selling and online trading platforms. There is no information as to when the hearing will take place or even what could be the result of the discussion. The move comes shortly after an army of retail investors placed hedge funds in a costly short squeeze after the funds had bet on future declines in GameStop stocks. Congress to Hold Hearings on Unethical Conducts of Hedge Funds Representative Maxine Waters, a Democrat heading the House panel, added that the hearing will focus on short selling, online trading platforms, gamification, and their systemic impact on capital markets and retail investors: “We must deal with the hedge funds whose unethical conduct directly led to the recent market volatility and we must examine the market in general and how it has been manipulated by hedge funds and their financial partners to benefit themselves while others pay the price.” The stock of GameStop had a week of meteoric rises instigated by retail users of the WallStreetBets community on Reddit. These traders forced a GME short-seller to close its position leading to losses of billions of dollars. Meanwhile, Robinhood and other retail trading platforms suspended purchasing of GameStop and other shares pumped by the WallStreetBets community. Crypto Market Positive Amid GameStop Frenzy Earlier this week, GameStop stocks skyrocketed from double to triple digits. At the beginning of the year, each share cost about $20/share to almost reaching $500. The share is currently sitting around $300 at the moment after dropping down below $126 today following the suspension of the trading by Robinhood and other retail trading platforms. Amid the Gamestop frenzy, the cryptocurrency market has added $100 billion in value while reaching almost $1 trillion, led by Dogecoin with a roaring high of 200%. Meanwhile, Bitcoin has rallied 5% over the last 24 hours from a downwards trend.
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