"Is Robinhood afraid to support tokens labeled as securities?'
Following defined as securities in the Securities and Exchange Commission (SEC) lawsuit against Coinbase, the popular trading platform Robinhood will end support for Cardano (ADA), Polygon (MATIC) and Solana (SOL) on June 27, 2023.
However, users are still allowed to trade or transfer the three cryptocurrencies until the tokens left in their accounts will be automatically sold for market value on that deadline.
It is true that the action was done as part of Robinhood's regular review of crypto, but it is the only token listed on the trading platform that is designated as a security by the SEC.
Following the delisting, Robinhood will offer trading for 15 cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Dogecoin (DOGE) and Avalanche (AVAX), all of which are exempt from the SEC's lawsuit.
While in the United States (US) House of Representatives, Robinhood said it was in the process of registering as a digital asset broker without getting the SEC to guide it on crypto compliance even though the agency's staff wanted to help.
This is because they had been going through the process for 16 months with the SEC staff but the process ended abruptly in March 2023 and the team could not see any results, commented Dan Gallagher, Robinhood Markets' chief compliance lawyer.
For the record, SOL and ADA have rejected claims that they are securities while MATIC refused to comment after the three digital assets were affected by the aggressive actions of the SEC.
