Robinhood Delists Tokens Native To Cardano, Solana, And Polygon

Republished By Plato

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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.

“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. Other tokens also 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 resulting in the suspension of dollar deposits by Binance.US, a US
affiliate of Binance. The securities watchdog is also 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 also
charged the exchange’s Founder Changpeng Zhao for secretly controlling
Binance.US, an entity purported to be independent.

“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.