In light of the crackdowns on Coinbase and Binance and the indictment of top digital currencies as securities, Robinhood has decided to end support for Cardano (ADA), Polygon (MATIC) and Solana (SOL). As the commission-free trading platform detailed, the support for these three tokens will end on June 27th, making it the first exchange/brokerage that will delist these digital currencies.
The announcement shared today confirmed the rumors surrounding Robinhood and the likelihood of it delisting the assets designated as investment contracts by the United States Securities and Exchange Commission (SEC). In light of the update, the trading platform has advised its users to transfer their assets before the due deadline.
The exchange said while users will still be able transfer the affected cryptos until the said date, users who refuse to move their funds will have them liquidated at the market rate and the funds will be credited to their Robinhood buying power.
Robinhood confirmed that besides these digital currencies, no other crypto trading on its platform will be affected. The trading outfit also reassured its users that their assets are safe on its platform, a confirmation that is necessary to prevent panic selling.
Robinhood to Stay on the Right Side of the Law
It is not unusual considering the history of the cryptocurrency ecosystem for exchanges to boldly delist tokens that the SEC has tagged as a security. Coinbase exchange which is now under intense scrutiny by the market regulator has also once found itself in this dilemma when it concerns XRP.
Back in December 2020 when the regulator filed the lawsuit against Ripple Labs, Coinbase exchange delisted the indicted XRP coin at the time, coming off as one of the many trading platforms that turned their backs against the digital currency at the time.
For Robinhood, staying on the right side of the law remains its goal and as a brokerage that adopted digital currencies just a few years ago, the loyalty to the affected tokens appears not to have run too deep.
What remains to be seen now is the number of exchanges that will join Robinhood in delisting the three tokens.
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