Robinhood Ceases Support For Cardano, Solana, And Polygon After SEC Calls Them Securities
Prominent trading platform Robinhood is cutting support for three coins implicated in the SEC lawsuits against Binance and Coinbase. The firm will no longer support Cardano (ADA), Polygon (MATIC), and Solana (SOL) after June 27, 2023.
Robinhood Axes SEC-Designated Crypto Securities
Robinhood has announced to its millions of customers that it has decided to delist tokens that were identified as securities in recent legal proceedings initiated against crypto exchange giants Binance and Coinbase by the SEC.
“We regularly review the crypto we offer on Robinhood,” the company said in a blog post. “Based on our latest review, we’ve decided to end support for Cardano (ADA), Polygon (MATIC), and Solana (SOL) on June 27th, 2023, at 6:59 PM ET.”
Holders should withdraw or transfer these tokens on the app before the deadline. Afterwards, the company will automatically sell the coins left in holders’ accounts at market value and credit the amount into the users’ Robinhood buying power. Notably, this decision only affects SOL, MATIC, and ADA, and not other tokens supported by the platform.
The prices of the three coins remained largely unchanged following the delisting, with ADA plummeting 4.69%, SOL falling 1.22%, and MATIC dropping 1.68%.
The move by Robinhood comes days after the SEC sued both Binance and Coinbase for a myriad of alleged securities laws violations. The SEC’s recent aggressive actions against crypto exchanges highlight the agency’s intent to police the industry through enforcement in the absence of a clear regulatory framework.
While testifying before the House Agriculture Committee on Tuesday, Robinhood Markets’ chief compliance lawyer Dan Gallagher said the company was keenly reviewing the SEC’s complaints against the two exchanges.
The fintech trading app listed Solana and Polygon in April 2022, with Cardano’s addition coming in September 2022. Developers behind ADA, Input Output Global (IOG), have publicly disputed the SEC’s classification of the token as unregistered securities.
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