Robinhood will end support for 3 tokens named in SEC lawsuits

Cryptocurrency and inventory buying and selling app Robinhood introduced it will be ending support for Cardano, Polygon and Solana — all tokens labeled as unregistered securities by the US Securities and Change Fee (SEC) in its current authorized actions in opposition to crypto exchanges Binance and Coinbase. 

In a June 9 replace, Robinhood said it will end support for the three tokens beginning on June 27 following a assessment. In a Twitter thread, the agency particularly cited the SEC’s actions as causes for the delisting, saying the Coinbase and Binance lawsuits “launched a cloud of uncertainty” across the tokens — the one three in the circumstances that Robinhood supported.

“We consider in the way forward for crypto and will proceed to advocate for regulatory readability in the U.S. in order that clients can take part in {the marketplace} with better confidence,” mentioned Robinhood.

Earlier this week, the SEC sued crypto corporations Binance and Coinbase. The SEC has alleged that numerous cryptocurrencies buying and selling on these platforms are unregistered securities, together with three which can be presently supported on Robinhood Crypto. (1/4)

— Robinhood (@RobinhoodApp) June 9, 2023

On June 5, the SEC filed a lawsuit in opposition to Binance for allegedly providing unregistered securities. The regulator followed with similar allegations in opposition to Coinbase — a U.S. crypto alternate — naming 13 tokens, together with Cardano (ADA), Polygon (MATIC) and Solana (SOL) as unregistered securities.

Former SEC commissioner and Robinhood chief authorized compliance and company affairs officer Dan Gallagher (*3*) that the present method to working as a registered broker-dealer in the U.S. was like “crypto the arduous means.” He added that the trail laid out by the SEC for crypto companies was troublesome to observe, even when Robinhood tried.

“When Chair [Gary] Gensler on the SEC in 2021 mentioned, ‘Come in and register,’ we did,” mentioned Gallagher. “We went via a 16-month course of with the SEC employees making an attempt to register a particular objective broker-dealer, after which we have been fairly summarily instructed in March that that course of was over and we’d not see any fruits of that effort.”

Associated: SEC lawsuits: 67 cryptocurrencies are now seen as securities by the SEC

The SEC circumstances have spurred outrage amongst many crypto customers, who’ve identified inconsistencies in the regulator’s method to dealing with digital asset companies. For instance, the lawsuit in opposition to Coinbase alleged the alternate has been working as an unregistered safety dealer since 2019, whereas the agency additionally went public in April 2021.

Binance.US and Binance CEO Changpeng Zhao have been additionally named in the SEC’s circumstances in opposition to the crypto exchanges for their alleged roles in unregistered affords and gross sales of tokens, together with BNB (BNB). The U.S. entity introduced on June 8 it might be suspending U.S. dollar deposits in response to the SEC’s “extraordinarily aggressive and intimidating techniques.”

Journal: Crypto regulation: Does SEC Chair Gary Gensler have the final say?