Cryptocurrency and stock trading app Robinhood recently announced its decision to end support for Cardano, Polygon, and Solana, following their identification as unregistered securities in the United States Securities and Exchange Commission (SEC) lawsuits against crypto exchanges Binance and Coinbase. Robinhood stated that due to the “cloud of uncertainty” introduced by the lawsuits, support for these tokens will cease on June 27th, after a thorough review.
The platform’s decision to delist these tokens is an expression of their continued advocacy for regulatory clarity in the United States, ensuring that customers can partake in the marketplace with greater confidence. The SEC filed a lawsuit against Binance on June 5th, accusing the company of offering unregistered securities, followed by similar allegations against Coinbase, naming 13 tokens including ADA, MATIC, and SOL as unregistered securities.
The SEC’s approach to dealing with digital asset firms has been called into question by the crypto community, noting inconsistencies in its handling. In the lawsuit against Coinbase, the SEC alleged that the exchange had been operating as an unregistered security broker since 2019, despite the fact that the company went public in April 2021. Additionally, Binance.US and Binance CEO Changpeng Zhao were named in the SEC’s case against the crypto exchange for their alleged roles in unregistered offers and sales of tokens, including Binance Coin. As a result, the U.S. entity announced on June 8th that it would be suspending U.S. dollar deposits in response to the SEC’s “extremely aggressive and intimidating tactics.”
Source: Cointelegraph
