Robinhood Will End Support for 3 Tokens Named in SEC Lawsuit

Cryptocurrency and stock trading app Robinhood announced that it will end support for Cardano, Polygon and Solana – all tokens deemed unregistered securities by the United States Securities and Exchange Commission (SEC) in its recent legal actions against crypto exchanges Binance and Coinbase. Labeled as.

In the June 9 update, Robinhood Said It will end support for the three tokens starting June 27 following a review. In a Twitter thread, the firm specifically Cited The SEC actions, Coinbase and Binance lawsuits cited as reasons for the delisting “introduced a cloud of uncertainty” around the token – only three of the Robinhood-backed cases.

“We believe in the future of crypto and will continue to advocate for regulatory clarity in the US so that clients can participate in the markets with greater confidence,” said Robinhood.

Earlier this week, the SEC sued crypto companies Binance and Coinbase. The SEC has alleged that several cryptocurrencies trading on those platforms are unregistered securities, including three that are currently supported on Robinhood Crypto. (1/4)

— Robinhood (@RobinhoodApp) June 9, 2023

On June 5, the SEC filed a lawsuit against Binance for allegedly offering unregistered securities. The regulator followed similar allegations against Coinbase – a US crypto exchange – by naming 13 tokens including Cardano (ADA), Polygon (MATIC) and Solana (SOL) as unregistered securities.

Dan Gallagher, former SEC commissioner and Robinhood’s chief legal compliance and corporate affairs officer, testified at a June 6 congressional hearing that the current way of operating as a registered broker-dealer in the US was like “crypto in a hard way” . He added that it was difficult for crypto firms to follow the path laid out by the SEC, even when Robinhood tried.

Gallagher said, “When Chair (Gary) Gensler at the SEC in 2021 said, ‘Come on in and register,’ we did.” , and then we were told briefly in March that the process was over and we would see no fruits of that effort.”

Connected: SEC Lawsuit: 67 Cryptocurrencies Now Seen as Securities by the SEC

The SEC cases have sparked outrage among many crypto users, who have pointed out inconsistencies in the regulator’s approach to handling digital asset firms. For example, the lawsuit against Coinbase alleges that the exchange has been operating as an unregistered securities broker since 2019, even though the firm went public in April 2021.

Binance.US and Binance CEO Changpeng Zhao were named in SEC cases against crypto exchanges for their alleged role in unregistered offers and token sales including BNB (BNB). The US entity announced on June 8 that it would be suspending US dollar deposits in response to the SEC’s “extremely aggressive and scare tactics”.

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