Robinhood Stock Surges 161% in 2025 Amid Crypto Rally and Regulatory Scrutiny

Robinhood's stock experienced a significant surge, reaching over $103 before retreating by the end of the trading day on Friday. This volatility marked another tumultuous day in what has been an extraordinary year for the financial platform. The company has seen a remarkable 161% increase in its stock value in 2025, driven by the rally in the crypto market and a surge in retail investor interest. However, this upward trajectory coincided with reports that JPMorgan plans to charge fintech firms for access to customer bank data, a move that could impose new costs on Robinhood and its competitors.

This news had an immediate impact on the market. Robinhood, which operates on thin margins to offer free services, saw its stock rally falter as investors reacted to the potential for increased expenses. PayPal and Affirm both experienced drops of nearly 6% on the same day, highlighting the market's sensitivity to additional costs. While Robinhood managed to stay in positive territory, the pullback from its intraday high underscored the fragility of its recent gains.

Robinhood continues to face regulatory scrutiny and public backlash, particularly over its crypto practices. Florida Attorney General James Uthmeier criticized the company's use of payment for order flow, where market makers pay Robinhood to execute trades. Uthmeier argued that this practice could result in worse prices for users, describing Robinhood's claims of being the best bargain as deceptive. In response, Lucas Moskowitz, Robinhood Crypto’s general counsel, defended the platform's practices, stating that the company provides clear disclosures about pricing and fees associated with transactions.

In addition to regulatory challenges, Robinhood announced changes to its staking rewards program. Starting October 1, the company will take 25% of staking rewards from U.S. users and 15% from European users. This move brings Robinhood closer to competitors like Coinbase, which charges between 25.25% and 35%, but higher than Gemini’s flat 15% fee. The decision to implement staking rewards comes after a period of regulatory pressure under the previous administration, which has since eased, allowing firms to reintroduce such services.

Robinhood is also under scrutiny in Europe for its new tokenized stock program. The company launched blockchain-based assets that provide users with synthetic exposure to private firms like OpenAI and SpaceX through special purpose vehicles (SPVs). These tokens do not offer voting rights or direct ownership but track the value of SPVs that hold shares in the actual companies. In an interview, Robinhood CEO Vlad Tenev acknowledged that these tokens are not technically equity but defended the offering as a way for retail customers to gain exposure to these assets. Tenev also expressed cooperation with regulators, anticipating scrutiny as a large, innovative player in the space. SEC Chair Paul Atkins described the model as an innovation, offering rare support despite the lack of clear regulatory guidelines.

Amidst the legal and regulatory challenges, Robinhood is already planning its next move. The company is developing an app tied to a newly signed megabill that includes $1,000 investment accounts seeded by the government for every newborn. Known as ‘Trump Accounts’, this initiative could provide Robinhood with access to millions of new users. Although it is still in the early stages, the company has begun prototyping the app, positioning itself to capitalize on this potential growth opportunity.

Robinhood's year has been characterized by rapid growth and significant challenges. While the market has responded positively to the company's expansion, the real test will be whether Robinhood can sustain its momentum in the face of regulatory scrutiny and potential new costs. The future of the financial platform remains uncertain, but its ability to innovate and adapt will be crucial in determining its long-term success.