Robinhood, a prominent trading platform, recently announced the delisting of three cryptocurrency coins. Cardano (ADA), Polygon (MATIC), and Solana (SOL) are the names of these tokens. This ruling follows the Securities and Exchange Commission’s (SEC) classification of these tokens as unregistered securities.
Robinhood will no longer offer these coins on their platform as of June 27. If customers still have these tokens in their accounts on the delisting date, the platform will sell them automatically.
It should be noted that the SEC’s lawsuit against large cryptocurrency exchanges like Binance and Coinbase played a significant influence in this. In these allegations, the regulatory agency refers to ADA, MATIC, and SOL as unregistered securities.
While the Solana Foundation and Cardano development firm IOG have refuted these assertions, Robinhood has proceeded. Moreover, this decision is considered a direct reaction to the SEC’s measures against other cryptocurrency assets.
Users who do not want their ADA, MATIC, or SOL tokens to be immediately sold can withdraw them from Robinhood. Nevertheless, is critical to determine whether withdrawal options are accessible in their particular states.
🚨📢#Robinhood to delist Cardano, Polygon, and Solana.
— Walletor (@walletorapp) June 9, 2023
Other digital currencies named as possibly unregistered securities in SEC litigation include BNB Chain (BNB), Binance USD (BUSD), Filecoin (FIL), Cosmos (ATOM), and others.
It is critical for investors to be up to date on regulatory changes in the DeFi industry. As the industry evolves, regulatory actions may have an impact on trading platforms and the accessibility of certain tokens for investing.
Furthermore, many supporters of these currencies contend that they serve a purpose other than being categorized as securities. In addition, they highlight the new technology and decentralized environments that they provide.
The decision by Robinhood to delist tokens underlines regulators’ continued efforts to control the cryptocurrency market. If investors want to continue trading these coins, they should stay up-to-date and look for alternate platforms.