Robinhood is ending support for three commonly traded cryptocurrencies, Cardano (ADA), Solana (SOL), and Polygon (MATIC), which were identified as securities by the Securities and Exchange Commission (SEC) in lawsuits against top cryptocurrency exchanges this week. 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, the announcement clarified.

"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 assets is affected. Additionally, the company notified users that they had the option to transfer their cryptocurrency holding to other wallets.

SEC’s Enforcement Actions Threaten Robinhood

Robinhood told Congress on Tuesday that it was actively reviewing its offering following regulators' action, according to a report by Bloomberg. In a lawsuit filed this week by the SEC against Coinbase, the largest crypto exchange in the US, the watchdog termed ADA, MATIC, and SOL as securities. 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 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 customer assets. In what it termed as a ‘web of deception,’ SEC also charged the exchange’s Founder Changpeng Zhao for secretly controlling Binance.US, an entity that was purported to be independent.