Massachusetts regulators seek to revoke Robinhood's license; brokerage sues


FILE PHOTO: The Robinhood App is displayed on a screen in this photo illustration January 29, 2021. REUTERS/Brendan McDermid/Illustration

BOSTON (Reuters) - Massachusetts regulators on Thursday sought the revocation of Robinhood's broker-dealer license after charging that it encourages inexperienced investors to place risky trades without limits, while the online brokerage sued to invalidate a new rule underlying the case.

Massachusetts Secretary of State Bill Galvin sought the revocation in a revised administrative case announced shortly after Robinhood sued in state court in Boston to challenge a fiduciary standard of conduct his office adopted last year.

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