See More

Breaking Robinhood to Stop Supporting Cardano, Polygon, and Solana Amid Intensifying Crackdown

2 mins
Updated by Michael Washburn
Join our Trading Community on Telegram

In Brief

  • Robinhood makes an about-face on three widely traded cryptocurrencies.
  • The SEC"s high-profile enforcement actions targeting Binance and Coinbase continue to send tremors through the industry.
  • Has Gary Gensler's agency gone too far in its zeal to suppress what it considers a Ponzi scheme?
  • promo

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.

Learn where best to trade digital assets:

How to Choose The Right Crypto Exchange

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.

Top crypto projects in the US | July 2024
Harambe AI Harambe AI Explore
Uphold Uphold Explore
Exodus Exodus Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | July 2024
Harambe AI Harambe AI Explore
Uphold Uphold Explore
Exodus Exodus Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | July 2024

Trusted

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Frame-2298.png
Josh Adams
Josh is a reporter at BeInCrypto. He first worked as a journalist over a decade ago, initially covering music before moving into politics and current affairs. Josh first owned Bitcoin in 2014 and has followed the space ever since. He is particularly interested in Web3 adoption, policy and regulation, CBDCs, privacy, and the future of the metaverse.
READ FULL BIO
Sponsored
Sponsored