Robinhood Crypto is currently facing scrutiny in Florida over its claims that its trading platform offers the lowest costs for purchasing cryptocurrencies.

In a press release issued on Thursday, Florida’s Attorney General James Uthmeier stated that there is evidence showing that consumers may end up paying more on Robinhood compared to other platforms. He emphasized the need for transparency in crypto trading, especially as the market continues to evolve.

“Crypto is a vital component of Florida’s financial future, and President Trump’s efforts to advance the crypto market will make America stronger and wealthier. When consumers buy and sell crypto assets, they deserve transparency in their transactions.”
Translation: Uthmeier highlights the importance of transparency in financial transactions involving crypto.

Uthmeier’s allegations center on Robinhood’s payment for order flow (PFOF) model, which claims to allow zero-commission trading but may actually create a conflict of interest, benefiting the company more than its customers.

Previously, Robinhood had to pay $65 million to settle a SEC action regarding misleading claims about its trade execution quality. Uthmeier’s office is now demanding documents related to Robinhood’s pricing strategies, comparative price studies, and user data on trading.

Robinhood is expected to respond to the subpoena by the end of the month.