Robinhood will end support for 3 tokens named in SEC lawsuits
Cryptocurrency and stock trading app Robinhood announced it will be ending support for Cardano, Polygon and Solana — all tokens labeled as unregistered securities by the United States Securities and Exchange Commission (SEC) in its recent legal actions against crypto exchanges Binance and Coinbase.
In a June 9 update, Robinhood said it will end support for the three tokens starting on June 27 following a review. In a Twitter thread, the firm specifically cited the SEC’s actions as reasons for the delisting, saying the Coinbase and Binance lawsuits “introduced a cloud of uncertainty” around the tokens — the only three in the cases that Robinhood supported.
“We believe in the future of crypto and will continue to advocate for regulatory clarity in the U.S. so that customers can participate in the marketplace with greater confidence,” said Robinhood.
Earlier this week, the SEC sued crypto companies Binance and Coinbase. The SEC has alleged that a number of cryptocurrencies trading on those platforms are unregistered securities, including three that are currently supported on Robinhood Crypto. (1/4)
On June 5, the SEC filed a lawsuit against Binance for allegedly offering unregistered securities. The regulator followed with similar allegations against Coinbase — a U.S. crypto exchange — naming 13 tokens, including Cardano (ADA), Polygon (MATIC) and Solana (SOL) as unregistered securities.
Former SEC commissioner and Robinhood chief legal compliance and corporate affairs officer Dan Gallagher testified in a June 6 congressional hearing that the current approach to operating as a registered broker-dealer in the U.S. was like “crypto the hard way.” He added that the path laid out by the SEC for crypto firms was difficult to follow,
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