Investment platform Robinhood will cease support for Cardano (ADA), Polygon (MATIC), and Solana (SOL) cryptocurrencies from 6:50 p.m. (EST) on June 27, 2023. The move comes as the Securities and Exchange Commission (SEC) steps up its unprecedented crackdown on crypto assets.
For all its popularity, Robinhood is not immune to pressure from regulators bent on curbing the use of tokens they deem to be unregistered securities. This decision follows a recent review of the cryptocurrencies offered on the platform.
Robinhood Plays It Safe With the SEC
The platform offers commission-free trading of stocks, options, ETFs, and cryptocurrencies. The company initially focused on traditional investing. However, Robinhood expanded its services to include cryptocurrency trading in 2018.
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Users who currently hold ADA, MATIC, and SOL can continue to buy, sell, and hold these cryptocurrencies. Users have the option to transfer ADA, MATIC, and SOL until June 27, except if they reside in Hawaii, Nevada, or New York.
After the deadline, any remaining ADA, MATIC, and SOL in a Robinhood account will be sold at their market value. Robonhood will credit the proceeds from the sales to the traders’ Robinhood accounts. Users also have the option to send them to another wallet or crypto platform.
The move comes as a response to the SEC recently designating a number of cryptoassets as unregistered securities. The trading platform is likely trying to avoid any regulatory scrutiny from Gensler’s SEC. It is not hard to see why a firm would wish to avoid any complications.
This week, the agency announced lawsuits against Binance and Coinbase, the two largest crypto exchanges. Both face charges of breaking multiple securities laws. Both exchanges deny any wrongdoing. But, given how other high-profile enforcement actions involving the likes of Ripple have played out, they may well be closer to the beginning than the end of their legal troubles.
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