thecoinrepublic.com
- 1 Robinhood recently announced that it will cut support for the three cryptocurrencies named Cardano, Polygon and Solana.
- 2 The decision was made as some crypto tokens were declared as securities by SEC.
- 3 Polygon initially declined to comment on claims and charges while Solana and Cardano refused the claims.
Robinhood recently announced that it will now support three fewer cryptocurrencies from the list of 18 it issued earlier. It has cut support for the cryptocurrencies like Cardano, Polygon and Solana.
ADA, MATIC and SOL Delisted After SEC Claim
“We regularly review the crypto we offer on Robinhood,” the company said in a statement. They also mentioned that on the basis of their most recent review, they have decided to cut support for some cryptocurrencies. Those cryptocurrencies are Cardano (ADA), Polygon (MATIC) and Solana (SOL). The support will be cut off officially from June 27th, 2023 at 6:59 PM ET.
By June 27, users must withdraw or exchange these assets for fiat currency or other Robinhood-eligible assets. Following that, the users will get the selling revenues from the sale of these assets at market rates. According to the data, the price of all three assets fluctuated during the last day. ADA declined 2.7%, MATIC fell 0.4%, and SOL climbed 1.1% in 24 hours between June 8 to June 9.
According to Robinhood, the decision was made as part of the company’s routine examination of cryptocurrencies. The only tokens identified as securities by the most recent SEC litigation were those that were listed on the trading platform.
The U.S. Securities and Exchange Commission sued Binance and Coinbase a few days prior to the decision. They alleged a number of claims, including violations of the securities laws. These claims and allegations were shared by the two accusations.
ADA, MATIC, and SOL were allegedly unregistered securities in both actions. A Robinhood representative said that this “introduced a cloud of uncertainty around these assets. As a result of this, our team has decided to end support for them.” Some of Robinhood’s user base received a similar message this morning.
The head of regulatory compliance at Robinhood, Dan Gallagher, stated during his Tuesday testimony. He verified before the House Agriculture Committee that the company was “actively reviewing” its cryptocurrency offers.
Polygon earlier declined to comment upon the claims that the tokens are securities. But Solana and Cardano have both refuted such claims. The three tokens lost some value earlier this week as a result of the SEC lawsuits. But they largely held their value on Friday. In April 2022, the trading app introduced support for Solana and Polygon, and Cardano’s listing would follow in September 2022.
Robinhood will handle only 15 crypto tokens from its initial list of 18 crypto tokens. The initial list included Bitcoin (BTC), Ethereum (ETH), and meme coins like Dogecoin (DOGE) and Shiba Inu (SHIB), layer-1 tokens such as Avalanche (AVAX) and Tezos (XTZ). It also included DeFi tokens such as Aave (AAVE), Compound (COMP), and Uniswap (UNI),