In short: Trading firm Robinhood announced the delisting of Solana (SOL), Cardano (ADA), and Polygon (MATIC) after the SEC labeled them as securities in suits against crypto heavyweights. Robinhood cited the SEC’s claim causing uncertainty around these assets as the reason for the delisting. The three tokens will no longer be supported by Robinhood after June 27th, and remaining tokens will be sold for market value. The development teams behind these projects dismissed the SEC’s claim, and Robinhood’s move came amidst SEC's crackdown on other crypto companies.
Our quick analysis:
US-based trading firm Robinhood has recently announced the delisting of Solana (SOL), Cardano (ADA), and Polygon (MATIC) due to the Securities and Exchange Commission's (SEC) labeling them as securities. This move by Robinhood has surprised many of its users, who are left wondering what's going on.
The SEC's claim has caused a cloud of uncertainty around these assets, which resulted in Robinhood's team ending support for them. It seems that the SEC's pressure has intensified as cryptocurrency trading platforms like Binance and Coinbase are also under scrutiny by the agency.
Despite the development teams behind these three projects disputing the SEC's claim, Robinhood still decided to delist them. The company stated that any remaining ADA, MATIC, and SOL in users' Robinhood Crypto accounts after the deadline would be sold for market value, and the proceeds would be credited to their Robinhood buying power. There will be no impact on other coins on the brokerage firm.
Robinhood's Chief Legal Officer, Dan Gallagher, announced earlier this week that the company was "actively reviewing" tokens after the SEC's analysis. He revealed that Robinhood tried to register with the agency as a special-purpose broker for digital assets but went through a 16-month process to do so.
However, in March, the SEC staff informed Robinhood that the registration process was over and would not see any fruits of their efforts. Coinbase's chief legal officer, Paul Grewal, faced a similar issue, where the crypto exchange failed to secure registration despite months of discussions, blaming the SEC for dismissing their attempts with no response or any counter-proposal.
In conclusion, Robinhood's decision to delist SOL, ADA, and MATIC has caused a stir among crypto traders. The inefficiencies within the SEC's current registration process may be partly to blame for this development, and it remains to be seen how it will impact cryptocurrencies' future in the US.
Image provided by Unsplash
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
Our quick analysis:
US-based trading firm Robinhood has recently announced the delisting of Solana (SOL), Cardano (ADA), and Polygon (MATIC) due to the Securities and Exchange Commission's (SEC) labeling them as securities. This move by Robinhood has surprised many of its users, who are left wondering what's going on.
The SEC's claim has caused a cloud of uncertainty around these assets, which resulted in Robinhood's team ending support for them. It seems that the SEC's pressure has intensified as cryptocurrency trading platforms like Binance and Coinbase are also under scrutiny by the agency.
Despite the development teams behind these three projects disputing the SEC's claim, Robinhood still decided to delist them. The company stated that any remaining ADA, MATIC, and SOL in users' Robinhood Crypto accounts after the deadline would be sold for market value, and the proceeds would be credited to their Robinhood buying power. There will be no impact on other coins on the brokerage firm.
Robinhood's Chief Legal Officer, Dan Gallagher, announced earlier this week that the company was "actively reviewing" tokens after the SEC's analysis. He revealed that Robinhood tried to register with the agency as a special-purpose broker for digital assets but went through a 16-month process to do so.
However, in March, the SEC staff informed Robinhood that the registration process was over and would not see any fruits of their efforts. Coinbase's chief legal officer, Paul Grewal, faced a similar issue, where the crypto exchange failed to secure registration despite months of discussions, blaming the SEC for dismissing their attempts with no response or any counter-proposal.
In conclusion, Robinhood's decision to delist SOL, ADA, and MATIC has caused a stir among crypto traders. The inefficiencies within the SEC's current registration process may be partly to blame for this development, and it remains to be seen how it will impact cryptocurrencies' future in the US.
Image provided by Unsplash
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
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