Robinhood removes three commonly traded cryptocurrencies, Cardano (ADA), Solana (SOL) and Polygon (MATIC), which were recently identified as securities by the Securities and Exchange Commission (SEC) in lawsuits against major exchanges of cryptocurrency. The financial service provider offers commission-free trading in cryptocurrencies and other instruments.
“We regularly review the crypto we offer on Robinhood (and) have decided to end support for ADA, MATIC and SOL effective June 27, 2023 at 6:59 p.m. 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 would not be able to make transfers.
“Any ADA, MATIC, and SOL that is still on Robinhood after the deadline will automatically be sold and credited to your Robinhood buying power,” Robinhood said, adding that no other crypto assets are affected. Additionally, the company informed users that they have the option to transfer their tokens to other wallets.
SEC Enforcement Actions Threaten Robinhood
Robinhood told Congress on Tuesday that it was actively reviewing its listed digital assets following action by regulators, according to a Bloomberg report. In a lawsuit filed this week against Coinbase by the SEC, the watchdog called ADA, MATIC, and SOL securities. Other tokens also identified as holdings in the deal include FIL, SAND, AXS, CHZ, FLOW, ICP, NEAR, VGX, DASH, and NEXO.
Robinhood’s announcement comes amid broad enforcement actions against digital asset platforms by the SEC, the latest of which resulted in the suspension of dollar deposits by Binance.US, a US subsidiary of Binance. The securities watchdog is also seeking a court order to freeze assets owned by Binance.US to prevent the company from transferring them overseas.
The SEC’s action came a day after it filed multiple charges against Binance for allegedly manipulating its trading volumes and mixing user assets. In what it called a “web of deception,” the SEC also accused exchange founder Changpeng Zhao of secretly controlling Binance.US, a purportedly independent entity.
Robinhood removes three commonly traded cryptocurrencies, Cardano (ADA), Solana (SOL) and Polygon (MATIC), which were recently identified as securities by the Securities and Exchange Commission (SEC) in lawsuits against major exchanges of cryptocurrency. The financial service provider offers commission-free trading in cryptocurrencies and other instruments.
“We regularly review the crypto we offer on Robinhood (and) have decided to end support for ADA, MATIC and SOL effective June 27, 2023 at 6:59 p.m. 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 would not be able to make transfers.
“Any ADA, MATIC, and SOL that is still on Robinhood after the deadline will automatically be sold and credited to your Robinhood buying power,” Robinhood said, adding that no other crypto assets are affected. Additionally, the company informed users that they have the option to transfer their tokens to other wallets.
SEC Enforcement Actions Threaten Robinhood
Robinhood told Congress on Tuesday that it was actively reviewing its listed digital assets following action by regulators, according to a Bloomberg report. In a lawsuit filed this week against Coinbase by the SEC, the watchdog called ADA, MATIC, and SOL securities. Other tokens also identified as holdings in the deal include FIL, SAND, AXS, CHZ, FLOW, ICP, NEAR, VGX, DASH, and NEXO.
Robinhood’s announcement comes amid broad enforcement actions against digital asset platforms by the SEC, the latest of which resulted in the suspension of dollar deposits by Binance.US, a US subsidiary of Binance. The securities watchdog is also seeking a court order to freeze assets owned by Binance.US to prevent the company from transferring them overseas.
The SEC’s action came a day after it filed multiple charges against Binance for allegedly manipulating its trading volumes and mixing user assets. In what it called a “web of deception,” the SEC also accused exchange founder Changpeng Zhao of secretly controlling Binance.US, a purportedly independent entity.
