In light of the crackdowns imposed on Coinbase (NASDAQ:COIN) and Binance and the condemnation of major cryptocurrencies as securities, Robinhood has decided to end support for Cardano (ADA), Polygon (MATIC), and Solana (SOL). The commission-free trading platform also reported. Support for these will end. The three tokens were released on June 27, making it the first exchange/brokerage to mine these digital currencies.
The announcement made today confirmed rumors surrounding Robin Hood and the possible delisting of assets designated as investment contracts by the US Securities and Exchange Commission (SEC). In light of the update, the trading platform has advised its users to transfer their assets before the stated deadline.
The exchange said that while users will still be able to transfer affected cryptocurrencies until the aforementioned date. Users who refuse to transfer their funds will be liquidated at the market rate and the funds will be added to their purchasing power in Robinhood.
Robinhood confirmed that besides these cryptocurrencies . Trading of other cryptocurrencies on its platform will not be affected. The trading team also reassured its users that their assets are safe on its platform. It is necessary confirmation to prevent panic selling.
Robin Hood to Stay on the Right Side of the Law It is not unusual considering the history of the cryptocurrency ecosystem for platforms to remove tokens that the SEC has classified as security. Coinbase which is now under intense scrutiny by the market regulator once found itself in this dilemma when it came to XRP.
Back in December 2020. When the regulator sued Ripple Labs. Coinbase delisted XRP at the time, emerging as one of many exchanges turning their backs against the digital currency at the time.
For Robin Hood, staying on the right side of the law remains his goal and as a broker only adopted cryptocurrencies a few years ago. It seems that the loyalty to the affected tokens was not very deep.
What remains now is how many exchanges will join Robinhood in deleting the three tokens.