IMPORTANT POINTS:
- In response to SEC lawsuits against Binance and Coinbase, Robinhood is delisting cryptocurrencies.
- Robinhood is actively reviewing the SEC allegations and reassessing its cryptocurrency offering due to regulatory actions.
- Robinhood’s delisting of popular cryptocurrencies has led to a drop in their values.
In light of the SEC’s lawsuit against Binance and Coinbase for possible violations of securities laws, trading giant Robinhood is reportedly delisting a number of notable crypto assets.
Following recent SEC crackdowns on the digital asset industry, Robinhood Chief Legal Officer Dan Gallagher reportedly notified members of Congress that the company will delist smart contract platforms Solana (SOL), Cardano (ADA) and Polygon (MATIC).
Gallagher also revealed to the House Agriculture Committee that Robinhood will reevaluate its cryptocurrency offering.
Robinhood is “actively reviewing” the SEC’s allegations, according to Gallagher, a former commissioner of the regulatory agency, “to determine what actions, if any, to take.”
This week, the SEC sued the two largest cryptocurrency exchanges in the world – Binance and Coinbase – for alleged violations of securities laws.
Popular stock trading platform Robinhood has said it will no longer support trading SOL, ADA, and MATIC, among 18 other cryptocurrencies.
The SEC cases, the newspaper claims, establish that the three cryptocurrencies in question are securities, making their sale and distribution illegal under federal law.
News of the delisting sent the value of all three holdings tumbling. SOL is trading at $16.86, 9.66% less in the last 24 hours, while ADA is at $0.2881 and MATIC at $0.70, 10.45% and 9.52% less, respectively.
