Robinhood Delisting Crypto and Changes to Supported Cryptocurrencies Announced
In a recent development, Robinhood, the well-known brokerage firm, has made the decision to delist Cardano (ADA), Polygon (MATIC), and Solana (SOL). This move comes in response to the US Securities and Exchange Commission’s classification of these three cryptocurrencies as securities, following charges filed against two prominent crypto exchanges.
As per the announcement, Robinhood will cease its support for Cardano, Polygon, and Solana on June 27. However, investors will still have the opportunity to engage in buying, selling, and holding ADA, MATIC, and SOL until the specified deadline.
Importantly, Robinhood assures its users that the delisting of these specific cryptocurrencies will not impact any other digital assets held on the platform. This statement was made clear in the firm’s official press release issued on Friday.
Robinhood also emphasizes that investors are not obligated to sell their holdings of ADA, MATIC, and SOL. Instead, they have the option to transfer these cryptocurrencies to an alternative wallet or crypto platform of their choice. However, it should be noted that any remaining balances of these delisted cryptocurrencies after the specified deadline will be automatically sold and credited accordingly.
Robinhood Delisting Crypto – Increased Regulatory Measures
In recent developments, the US Securities and Exchange Commission (SEC) has been actively involved in legal actions against major crypto exchanges. Both Binance, the world’s largest crypto exchange, and Coinbase, the leading US-based crypto exchange, faced lawsuits from the SEC earlier this week.
According to the charges filed by the SEC, cryptocurrencies such as ADA, MATIC, and SOL, among others, were deemed securities. This classification has raised concerns within the industry.
In a noteworthy development, Dan Gallagher, Robinhood’s legal chief and former SEC commissioner, reportedly informed Congress that the company was thoroughly reviewing the SEC’s analysis to determine if any necessary actions needed to be taken. This highlights Robinhood’s commitment to compliance and adherence to regulatory guidelines.
The SEC’s lawsuit against Binance and its CEO, Changpeng Zhao, accuses them of “blatant disregard” for securities laws, including illegal operation of an exchange and defrauding investors. Recent documents have further revealed substantial financial movements within Binance accounts, as indicated by an accountant representing the SEC. Notably, significant incoming credits are followed by outgoing debits within a short period, resulting in comparatively lower balances at the beginning and end of each month.
Shortly after the lawsuit against Binance, the SEC initiated legal proceedings against Coinbase, alleging that the exchange was unlawfully operating without registering with the agency. Additionally, Coinbase faces charges related to the unregistered offer and sale of securities associated with its staking-as-a-service program.
These actions by the SEC reflect the regulatory body’s determination to address potential violations within the crypto exchange sector. As the legal proceedings unfold, the industry awaits further developments and their potential impact on the broader crypto ecosystem.