Robinhood is delisting three commonly traded cryptocurrencies, Cardano (ADA), Solana (SOL), and Polygon (MATIC), which were recently identified as securities by the Securities and Exchange Commission (SEC) in lawsuits against top cryptocurrency exchanges. The financial services provider offers commission-free trades on cryptocurrencies and other instruments.
Robinhood Ends Support for Popular Altcoins
"We regularly review the crypto we offer on Robinhood (and) we have decided to end support for ADA, MATIC, and SOL from June 27, 2023, at 6.59 PM ET," Robinhood said on Friday.
According to the company, users can continue to buy, sell, hold, or transfer ADA, MATIC, and SOL before the deadline. However, users in Hawaii and Nevada would not be able to purchase the tokens, while those in New York cannot make transfers.
"Any ADA, MATIC, and SOL that is still on Robinhood after the deadline will be automatically sold and credited to your Robinhood buying power," Robinhood stated, adding that no other crypto asset is affected. Additionally, the company notified users that they had the option to transfer their tokens to other wallets.
SEC’s Enforcement Actions Threaten Robinhood
Robinhood told Congress on Tuesday that it was actively reviewing its listed digital assets following the regulators' action, according to a report by Bloomberg. In a lawsuit filed this week against Coinbase by the SEC, the watchdog termed ADA, MATIC, and SOL as securities. Moreover, other tokens identified as securities in the case include FIL, SAND, AXS, CHZ, FLOW, ICP, NEAR, VGX, DASH, and NEXO.
Robinhood's announcement comes amid sweeping enforcement actions against digital asset platforms by the SEC, the latest statement resulting in the suspension of dollar deposits by Binance.US, a US affiliate of Binance. On top of that, the securities watchdog is seeking a court order to freeze the assets belonging to Binance.US to prevent the company from transferring them overseas.
The SEC's action came a day after it brought several charges against Binance for allegedly manipulating its trading volumes and comingling users' assets. In what it termed as a ‘web of deception,’ the SEC charged the exchange’s Founder, Changpeng Zhao for secretly controlling Binance.US, an entity purported to be independent.
This article was written by Jared Kirui at www.financemagnates.com.
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