Robinhood pulls the plug on MATIC, SOL, ADA amid SEC crackdown

by Cryptospacey

U.S.-based digital buying and selling app Robinhood introduced immediately that it’ll finish assist for 3 main cryptocurrencies on June 27 — Cardano (ADA), Polygon (MATIC), and Solana (SOL).

The corporate suggested customers to promote or switch their holdings earlier than the deadline, at which level the tokens will likely be routinely offered and transformed to purchasing energy on the app.

Robinhood mentioned it made the choice after certainly one of its common opinions of the sector however didn’t disclose the precise purpose behind the delisting.

“Funding contracts”

Polygon, Cardano, and Solana’s native tokens have been not too long ago labeled as securities by the SEC in its lawsuits in opposition to Coinbase and Binance.

The regulator claims these tokens are securities as a result of they have been initially issued as a fundraising device for the businesses behind them and patrons have been “fairly” led to anticipate that their investments could be used to develop the initiatives which might yield income for them.

SEC Chair Gary Gensler clarified in public remarks yesterday that, within the SEC’s view, these tokens meet the definition of an funding contract—itself a class of securities—beneath the Howey Take a look at. The watchdog’s lawsuit additionally lists FIL, SAND, AXS, CHZ, FLOW, ICP, NEAR, VGX, DASH, and NEXO as securities.

Robinhood’s determination to delist three of the cryptocurrencies talked about within the checklist from its platform comes throughout the identical week that the SEC filed its landmark lawsuits in opposition to the crypto giants. The corporate has remained silent on whether or not the enforcement actions influenced the choice.

The corporate’s major market is the U.S. and making certain regulatory compliance is a matter of survival.

Whether or not the SEC will broaden the checklist to incorporate different cryptocurrencies or how its actions will influence the trade is unclear for now. Nonetheless, now that the SEC has formally made its place recognized and filed swimsuit accordingly, the query will now move from the court docket of public opinion to the courts themselves.

The publish Robinhood pulls the plug on MATIC, SOL, ADA amid SEC crackdown appeared first on CryptoSlate.

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