Robinhood (HOOD) has decided to delist certain crypto assets from its trading platform after the Securities and Exchange Commission deemed them unregistered securities.
Cardano (ADA), Polygon (MATIC), and Solana (SOL) will be delisted after being named in SEC lawsuits filed this week against crypto exchanges Binance and Coinbase (COIN). The lawsuits are part of a broader SEC effort to regulate cryptocurrency.
Key Takeaways
- Crypto assets ADA, MATIC, and SOL will be delisted from Robinhood on June 27.
- Users who still have ADAM, MATIC, or SOL in their Robinhood accounts on June 27 will have those assets automatically sold on the market.
- The move by Robinhood comes days after these three crypto assets were referred to as unregistered securities by the SEC in lawsuits against Binance and Coinbase.
- The Solana Foundation and Cardano development firm IOG have disputed the characterizations of Solana and Cardano as securities.
What Does This Mean For Your Investments?
Robinhood will cease trading of ADA, MATIC, and SOL on June 27. Any customers who have those three crypto assets in their Robinhood accounts at the time of the removal will have them automatically sold on the market.
That said, users are able to simply withdraw their ADA, MATIC, and SOL prior to the delisting if they'd rather not have the assets sold. However, the ability to withdraw those crypto assets is not available in every state.
Although not explicitly mentioned in the announcement, this move from Robinhood appears to be a direct response to the recent SEC lawsuits against Binance and Coinbase, as the three crypto assets targeted for removal from the platform were referred to as unregistered securities in those complaints.
On Thursday, the Solana Foundation dismissed the claim that SOL is a security, stating it is a community-driven project that relies on decentralized engagement from users and developers.
Cardano's development company IOG has similarly disputed the notion that ADA is a security. There have been no public comments from any entity associated with Polygon on the matter.
Other crypto assets that were referred to as securities in the lawsuits against Binance and Coinbase include but aren't limited to BNB Chain (BNB), Binance USD (BUSD), Filecoin (FIL), Cosmos (ATOM), Algorand (ALGO), Internet Computer (ICP), and Dash (DASH).
Additionally, SEC enforcement actions have been taken against a number of crypto projects directly such as Augur (REP) and Tron (TRX).
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