Robinhood Delists Cardano, Polygon & Solana After SEC Labels Them Securities

  • Robinhood has decided to delist Cardano, Polygon and Solana after the US Securities and Exchange Commission said those three were securities.
  • The SEC sued both Binance and Coinbase this week for disregarding securities laws.
  • Documents have revealed that “large amounts of money” were moved around in Binance accounts.

Robinhood Delists Cardano, Polygon and Solana Following SEC Labelling Them As Securities

Brokerage firm Robinhood has announced that it will be ending its support for Cardano (ADA), Polygon (MATIC) and Solana (SOL) on June 27th as the US Securities and Exchange Commission has labelled them as securities. Investors may buy, sell and hold these cryptocurrencies until then but any remaining tokens will be sold automatically by Robinhood afterwards. All other cryptocurrencies held on Robinhood remain unaffected.

SEC’s Crackdown On Exchanges

This week saw the SEC sue the world’s largest crypto exchange, Binance, for “blatant disregard” of securities laws, including operating an exchange illegally and defrauding investors. Documents have also revealed large amounts of money being moved around in various Binance-owned company accounts. The next day saw the SEC sue Coinbase for unlawfully operating its exchange without registering with the agency along with offering unregistered securities related to its staking-as-a-service program.

Investors Can Still Buy/Sell ADA/MATIC/SOL Until June 27th

Robinhood stated that investors don’t have to sell ADA/MATIC/SOL right away if they don’t want to; they can transfer them to another wallet or cryptocurrency firm beforehand if they wish. However, any remaining tokens will be automatically sold after June 27th when support ends.

“Large Amounts Of Money” Moved Around In Binance Accounts

An accountant for the SEC has revealed documents showing large amounts of money flowing in and out of Binance or Zhao-owned company accounts held at Silvergate Bank and Signature Bank. These transactions resulted in a lower balance at month’s beginning and end.

“Blatant Disregard” Of Securities Laws Led To SEC Suing Binance And Coinbase

The charges brought forward by the SEC against both crypto exchanges this week led to Robinhood deciding to delist Cardano (ADA), Polygon (MATIC) and Solana (SOL). The regulator said these tokens were deemed as securities which is why their support had to end on June 27th when all remaining tokens will be sold automatically by Robinhood afterwards unless transferred earlier by investors themselves.