Hot news

SOL, ADA, and MATIC are some tokens that Robinhood may delist

Robinhood has decided to delist certain crypto assets from its trading platform after the Securities and Exchange Commission (SEC) deemed them unregistered securities.

The affected tokens are Cardano (ADA), Polygon (MATIC), and Solana (SOL).

The move by Robinhood comes after the SEC filed lawsuits against crypto exchanges Binance and Coinbase,

naming these three tokens as unregistered securities.

Users who still have these tokens in their Robinhood accounts on June 27 will have them automatically sold on the market.

Robinhood’s chief legal officer, Dan Gallagher, testified before the House Agriculture Committee that the stock trading app was “actively reviewing” tokens that the SEC deemed were securities in lawsuits against Binance and Coinbase.

Robinhood is the first major crypto firm to remove tokens following the SEC’s allegations

  • Crypto assets ADA, MATIC, and SOL will be delisted from Robinhood on June 27.
  • Users who still have ADAM, MATIC, or SOL in their Robinhood accounts on June 27 will have those assets automatically sold on the market.
  • The move by Robinhood comes days after these three crypto assets were referred to as unregistered securities by the SEC in lawsuits against Binance and Coinbase.
  • The Solana Foundation and Cardano development firm IOG have disputed the characterizations of Solana and Cardano as securities.

Robinhood will cease trading of ADA, MATIC, and SOL on June 27.

Any customers who have those three crypto assets in their Robinhood accounts at the time of the removal will have them automatically sold on the market.

That said, users are able to simply withdraw their ADA, MATIC, and SOL prior to the delisting if they’d rather not have the assets sold.

However, the ability to withdraw those crypto assets is not available in every state.

why did the SEC allege that Solana, Cardano, and Polygon are securities

The Securities and Exchange Commission (SEC) alleged that Solana, Cardano, and Polygon are securities in a lawsuit against Binance, the world’s largest crypto exchange, and its CEO Changpeng Zhao.

  • The SEC claimed that these tokens are offered and sold as investment contracts, and thus as securities.
  • The lawsuit also identifies Binance’s BNB and the BUSD stablecoin as securities.

The SEC’s stance suggests a broadening interpretation of what constitutes a security,

which could set a precedent for how crypto assets are viewed and regulated, potentially disrupting the dynamics of the crypto market.

What are the implications of delisting crypto assets from Robinhood’s trading platform

The delisting of crypto assets from Robinhood’s trading platform could have several implications, including:

  • A potential selloff in the entire crypto market, as the SEC’s actions could trigger a negative sentiment among investors.
  • A significant impact on the price of the delisted tokens, as they may lose liquidity and demand from Robinhood’s user base.
  • Automatic selling of the delisted tokens for users who still have them in their Robinhood accounts on June 27, which could result in losses for some investors.
  • A negative impact on the reputation of the delisted tokens, as being named as unregistered securities by the SEC could raise concerns among investors and regulators.
  • Uncertainty and confusion among crypto investors, as the specific reasons behind the delisting and the findings from Robinhood’s review of these assets have not been disclosed.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button
WP Twitter Auto Publish Powered By : XYZScripts.com