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Trading app Robinhood will remove Solana, Cardano and Polygon from its platform come June 27. The move comes after the SEC alleged that several crypto tokens are unregistered securities.
Robinhood Markets Inc. announced today that it would end support for Solana (SOL), Cardano (ADA), and Polygon (MATIC) as of June 27.
No Other Coins Will Be Affected
The trading app informed users they would no longer be able to trade the tokens on its platform just days after the SEC labelled several popular cryptocurrencies unregistered securities. The regulator made the allegations in a lawsuit against crypto exchange Binance and its CEO, Changpeng Zhao.
The lawsuit names Cardano, Polygon, Solana, Cosmos Hub (ATOM), Filecoin (FIL), Decentraland (MANA), Algorand (ALGO), The Sandbox (SAND), Coti (COTI), and Axie Infinity (AXS). The suit also identified the BUSD and BNB stablecoins as securities.
Robinhood limited its delisting to SOL, ADA, and MATIC and said to users that no other coins would be affected and would remain safe on its platform.
It had been reported that the trading app would review its cryptocurrency offerings. On Tuesday, the company’s chief legal officer, Dan Gallagher, told Congress that it is “actively reviewing” the SEC’s analysis “to determine what if any, action to take.”
Gallagher, a former SEC commissioner, testified before the House Agriculture Committee during a meeting on digital assets.
SEC Sparkes Chaos in the Crypto Market
The securities agency filed lawsuits against two of the largest cryptocurrency exchanges – Binance and Coinbase.
According to the SEC, Binance mishandled customer funds and deceived investors and regulators about its operations. It further alleged that both Zhao and the exchange failed to restrict US customers from its platform and charged Binance with operating as an unregistered securities exchange.
The agency filed suit against Binance’s rival platform, Coinbase, accusing the exchange of acting as an unregistered broker, exchange, and clearinghouse. The SEC charged Coinbase for “the unregistered offer and sale of securities in connection with its staking-as-a-service program.”
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