Robinhood’s Latest Move Sheds Light
In the ever-evolving landscape of cryptocurrencies, one question continues to echo through the halls of the digital asset world – “What cryptocurrencies does the SEC classify as securities?” With a recent development involving Robinhood, a popular trading platform, we may have part of the answer.
Robinhood Adjusts Its Crypto Offerings Following SEC Lawsuits
Robinhood has announced it will cease support for Cardano (ADA), Polygon (MATIC), and Solana (SOL) by June 27th. This decision is a direct response to the recent Securities and Exchange Commission (SEC) lawsuits against Binance and Coinbase, in which these three tokens were specifically named as securities.
What Does This Mean for Robinhood Users?
In a recent blog post, Robinhood stated, “Following our latest review, we’ve decided to discontinue support for Cardano (ADA), Polygon (MATIC), and Solana (SOL) by June 27th, 2023 at 6:59 PM ET.” They reassured their users that the decision will not affect any other coins, and their digital assets remain secure on the platform.
Until the cutoff point, users can continue trading and transferring these three tokens on the Robinhood app. After June 27, any remaining tokens in user accounts will be automatically sold at the market value, as per Robinhood’s announcement.
The decision forms part of Robinhood’s ongoing review of the cryptocurrencies it supports. Interestingly, the three tokens in question were the only ones listed on the platform that were classified as securities by the SEC in their recent lawsuits.
Once these three tokens are delisted, Robinhood will continue to support trading for 15 different cryptocurrencies. These include popular options such as Bitcoin (BTC), Ether (ETH), Dogecoin (DOGE), and Avalanche (AVAX), none of which were classified as securities in the SEC’s lawsuit.
Robinhood’s Attempt to Align with SEC Regulations
In a recent testimony at the U.S. House of Representatives, Robinhood revealed that it had tried to register as a special-purpose broker for digital assets. Despite a 16-month process of engagement with the SEC, the platform was unable to secure guidance towards crypto compliance. Dan Gallagher, Robinhood Markets’ chief compliance lawyer, expressed the company’s frustration at this outcome.
Cardano and Solana have both dismissed the claims of their tokens being securities, while Polygon has so far declined to comment on the issue to CoinDesk. Despite the lawsuits, the value of these three tokens remained largely stable this Friday, after experiencing a dip earlier in the week.
With this latest move, Robinhood has given us a glimpse into the SEC’s stance on “What cryptocurrencies are classified as securities?” But in the dynamic world of digital currencies, this story is far from over. Stay tuned for more updates as we continue to explore this crucial question.