Robinhood, Webull gain on pattern day-trader rule repeal
In brief
- Robinhood stock gained 7% to $110.97; Webull rose 4% to $8.86 after rule repeal
- Pattern day-trader rule previously required $25,000 minimum equity for four or more trades in five business days
- Webull CEO reported crypto buy orders increased nearly 300% in the week following the June 4 repeal
Rule Repeal Expands Access
Robinhood shares rose 7% and Webull gained 4% following the removal of a decades-old constraint on day trading. The pattern day-trader rule previously required accounts making four or more day trades in five business days to hold at least $25,000 in equity. Its repeal on June 4 expanded access for smaller accounts.
The change has immediate implications for retail participation. Webull Chief Executive Officer Anthony Denier reported that buy-side orders for major cryptocurrencies had increased by almost 300% over the previous week and a half. This surge reflects the newfound ability for traders with sub-$25,000 accounts to execute multiple trades without triggering regulatory friction.
Market Context
Broader crypto markets showed modest movement. Bitcoin was up about 0.4% over 24 hours near $80,000, while the ARK Blockchain and Fintech Innovation ETF rose 2% and the iShares Bitcoin Trust ETF gained 0.6%.
The repeal's long-term effects remain uncertain. Lowering friction for retail trading can increase market participation, but it also concentrates risk among traders with limited capital and experience. Regulators and market observers will watch whether the surge in activity translates to sustained engagement or short-term volatility.
