In a surprising move, brokerage firm Robinhood recently announced its decision to delist Cardano (ADA), Polygon (MATIC), and Solana (SOL) on June 27, following the US Securities and Exchange Commission’s (SEC) claims that these three are securities. This comes amidst the SEC’s ongoing crackdown against two major crypto exchanges: Binance, the world’s largest crypto exchange, and Coinbase, the largest US-based crypto exchange.
According to Robinhood’s press release, investors can continue buying, selling, and holding ADA, MATIC, and SOL until the deadline. After the deadline, investors have the option to transfer their holdings to another wallet or crypto firm. Any remaining amounts will be automatically sold and credited. Nevertheless, other cryptocurrencies held on Robinhood will not be affected by this decision.
As a response to the SEC’s allegations that ADA, MATIC, and SOL are securities, Dan Gallagher, Robinhood’s legal chief and former SEC commissioner, stated that Robinhood is reviewing the analysis to determine whether any actions should be taken. This comes after a week of legal pressure from the SEC against Binance and Coinbase, with the argument that they are defrauding investors and operating illegally.
The SEC’s action against Binance focused on its CEO, Changpeng Zhao, and his alleged blatant disregard for securities laws. New documents have since exposed information related to large sums of money being moved around in Binance accounts. An accountant for the SEC commented on the unusual transactions, stating that large incoming credits were followed by outgoing debits within days at Silvergate Bank and Signature Bank, leaving accounts with a relatively low balance at the beginning and end of each month.
On the other hand, the SEC’s charges against Coinbase revolve around the unregistered offer and sale of securities related to its staking-as-a-service program, which they claim is unlawfully operating without having registered with the agency.
The ongoing crackdown on crypto exchanges raises several questions. While some may view this as a necessary step towards imposing regulations and ensuring investor protection, others might argue that it could lead to market manipulation and limiting overall growth. It also begs the question of whether the SEC’s actions will eventually shape the industry’s direction and change the way cryptocurrencies are perceived, bought, and sold.
Source: Cryptonews
