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.
“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.
Robinhood is
ending support for three commonly traded cryptocurrencies, Cardano (ADA),
Solana (SOL), and Polygon (MATIC), which were identified as securities by…
