Robinhood is ending assist for cardano (ADA), polygon (MATIC) and solana (SOL) — simply days after all three were targeted by the SEC in each of the SEC’s fits in opposition to Binance and Coinbase.
The belongings gained’t be tradable by way of Robinhood as of June 27, with the brokerage saying that clients with ADA, MATIC and SOL “nonetheless on Robinhood after the deadline can be robotically offered and credited” to their Robinhood account.
“Earlier this week the SEC sued crypto firms Binance and Coinbase and alleged {that a} quantity of cryptocurrencies are unregistered securities. This contains Solana (SOL), Polygon (MATIC), and Cardano (ADA), that are at the moment supported on the Robinhood Crypto platform,” Robinhood stated in an e mail to Blockworks.
“This launched a cloud of uncertainty round these belongings and, because of this, our group has determined to finish assist for them,” Robinhood continued.
The SEC is alleging that ADA, MATIC and SOL are all securities within the lawsuits.
In arguing SOL is a safety, the SEC wrote that the “marketed burning of SOL as half of the Solana community’s ‘deflationary mechanism’ has led buyers to fairly view their buy of SOL as having the potential for revenue to the extent there’s a built-in mechanism to lower the availability and subsequently enhance the value of SOL.”
For MATIC, the SEC claims that Polygon marketed that it burns MATIC tokens collected as charges, and likewise indicated that the availability of MATIC would lower.
“Any ADA, MATIC, and SOL that’s nonetheless on Robinhood after the deadline can be robotically offered and credited to your Robinhood shopping for energy,” Robinhood wrote in a weblog put up.
“However whereas paying lip service to its want to adjust to relevant legal guidelines, Coinbase has for years made out there for buying and selling crypto belongings which are funding contracts underneath the Howey take a look at and well-established rules of the federal securities legal guidelines,” the SEC stated in its lawsuit in opposition to Coinbase.
“Defendants have unlawfully solicited US buyers to purchase, promote and commerce crypto asset securities via unregistered buying and selling platforms,” the SEC wrote within the submitting in opposition to Binance.
Robinhood didn’t instantly reply to requests for remark.
Up to date June 9, 2023 at 10:18 am ET: Added feedback and context all through.
Get the day’s high crypto information and insights delivered to your e mail each night. Subscribe to Blockworks’ free newsletter now.
Need alpha despatched straight to your inbox? Get degen commerce concepts, governance updates, token efficiency, can’t-miss tweets and extra from Blockworks Research’s Daily Debrief.
Can’t wait? Get our information the quickest manner attainable. Join us on Telegram and comply with us on Google News.