Robinhood will end support for 3 tokens named in SEC lawsuits

Cryptocurrency and stock trading app Robinhood has announced that it will no longer support Cardano, Polygon, and Solana. Cardano, Polygon, and Solana are all tokens classified as unregistered securities in recent lawsuits against crypto exchanges Binance and Coinbase by the U.S. Securities and Exchange Commission (SEC).

In the June 9th update, Robin Hood Said As a result of the review, we will be deprecating 3 tokens starting June 27th. In a Twitter thread, the company specifically said, Quoted The SEC action cited the Coinbase and Binance lawsuits as the reason for the delisting, citing “a cloud of uncertainty” over the token, and targeted only those three Robinhood-backed lawsuits.

“We believe in the future of cryptocurrencies and will continue to advocate for regulatory clarity in the U.S. so that our customers can participate in the market with greater confidence,” Robinhood said.

Earlier this week, the SEC sued cryptocurrency companies Binance and Coinbase. The SEC claims that many cryptocurrencies traded on these platforms are unregistered securities, including three that are currently backed by Robinhood Crypto. (1/4)

— Robinhood (@RobinhoodApp) June 9, 2023

On June 5, the SEC filed a lawsuit against Binance for allegedly providing unregistered securities. Regulators subsequently filed a similar allegation against U.S. cryptocurrency exchange Coinbase, declaring 13 tokens, including Cardano (ADA), Polygon (MATIC) and Solana (SOL), as unregistered securities. mentioned.

Dan Gallagher, former SEC Commissioner and Chief Compliance and Corporate Affairs Officer at Robinhood, told a congressional hearing on June 6 that the current approach to operating as a registered broker-dealer in the United States is “the hard way cryptocurrencies ‘ and testified that it was something like He added that even if Robinhood tried, it would have been difficult to follow the path stipulated by the SEC for cryptocurrency companies.

“When I was chairman” [Gary] In 2021, the SEC’s Mr. Gensler said, ‘Go ahead and register,’ and we did. said Mr. Gallagher. “We went through a 16-month process with the SEC staff to register a special purpose broker-dealer, and after that, we saw a lot of results.” I simply told him I couldn’t. ”

Related: SEC Lawsuit: 67 Cryptocurrencies Deemed Securities By SEC

The SEC lawsuit has sparked outrage among many cryptocurrency users, pointing to inconsistent regulatory responses to digital asset companies. For example, the lawsuit against Coinbase alleges that the exchange has been operating as an unregistered security broker since 2019, while the company went public in April 2021.

Binance.US and Binance CEO Changpeng Zhao have also been named in the SEC lawsuit against the cryptocurrency exchange for allegedly engaging in unregistered offers and sales of tokens, including BNB (BNB). US corporations announced on June 8 that they were suspending U.S. dollar deposits in response to the SEC’s “extremely aggressive and coercive tactics.”

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