US-based digital trading app Robinhood announced Today, it was announced that support for three major cryptocurrencies, Cardano (ADA), Polygon (MATIC), and Solana (SOL), will end on June 27th.
The company advises users to sell or transfer their holdings before the deadline, at which point the tokens will automatically be sold and converted into purchasing power on the app.
Robinhood said the decision was made after regular sector reviews, but did not give an exact reason for the delisting.
“investment contract”
Polygon, Cardano and Solana native tokens were recently labeled as securities in a lawsuit by the SEC. coin base and binance.
Regulators say these tokens will initially be issued as a fundraising tool for the companies behind them, and that buyers “reasonably” expect their investments to be used to grow projects that will benefit them. They claim that these tokens are securities because they were forced to do so.
SEC Chairman Gary Gensler clarified in a public statement yesterday that, in the SEC’s view, these tokens meet the definition of an investment contract (a category of securities per se) under the Howie test. FIL, SAND, AXS, CHZ, FLOW, ICP, NEAR, VGX, DASH and NEXO are also listed as securities in the regulator’s lawsuit.
Robinhood’s decision to delist three of the listed cryptocurrencies from its platform came the same week the SEC filed a groundbreaking lawsuit against the cryptocurrency giant. The company has remained silent on whether the enforcement action influenced the decision.
The company’s primary market is the United States, and ensuring regulatory compliance is a matter of survival.
It is currently unclear whether the SEC will expand the list to include other cryptocurrencies or what impact the SEC’s actions will have on the industry. But now that the SEC has formally clarified its position and filed a lawsuit in response, the matter moves from the forum of public opinion to the court itself.
An article about Robinhood cracking down on MATIC, SOL and ADA first appeared on CryptoSlate in the SEC crackdown.
