In a significant move, the widely-used trading app Robinhood has announced its decision to end support for three cryptocurrencies – Cardano (ADA), Polygon (MATIC), and Solana (SOL) – from June 27, 2023. The firm stated that they regularly review the crypto offerings on their platform and based on their latest review, they have chosen to stop supporting these three digital assets.
Users holding ADA, MATIC, and SOL in their Robinhood accounts will be required to withdraw or sell these assets for fiat or other eligible assets on the platform before the deadline. After the termination date, Robinhood will liquidate the remaining holdings of these assets at market prices, with sale proceeds being credited to the users. The immediate impact of this announcement on the three altcoins’ prices has been mixed. Over the past 24 hours, ADA dropped by 2.7%, MATIC fell by 0.4%, while SOL showed an increase of 1.1%, according to CoinGecko data.
Interestingly, Robinhood’s decision comes just days after the U.S. Securities and Exchange Commission (SEC) filed lawsuits against Binance and Coinbase for a range of allegations, including securities law violations. Both lawsuits claimed that ADA, MATIC, and SOL were unregistered securities. Robinhood’s regulatory compliance head, Dan Gallagher, testified before the House Agriculture Committee on Tuesday, revealing that the firm was “actively reviewing” its crypto offerings.
Robinhood initially started supporting Solana and Polygon in April 2022, followed by Cardano in September 2022. With this latest development, the trading app will have three fewer crypto tokens in its roster, reducing the total number from 18 to 15. Robinhood’s remaining offerings include prominent cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), meme coins like Dogecoin (DOGE) and Shiba Inu (SHIB), layer-1 tokens such as Avalanche (AVAX) and Tezos (XTZ), and DeFi tokens like Aave (AAVE), Compound (COMP), and Uniswap (UNI).
The move raises questions about the future of these three cryptocurrencies and their market positions, as well as the regulatory compliance of major trading platforms. It also highlights the necessity for ongoing reviews and adjustments to maintain compliance with ever-evolving regulations in the rapidly expanding world of cryptocurrencies.
Source: Decrypt
