Robinhood To Review Its Crypto Listing Amid SEC’s Crackdown On Exchanges

Because the crypto regulatory environment within the US grows more and more cloudy, distinguished inventory exchanges and brokerage corporations like Robinhood are starting to rethink their cryptocurrency choices.

The SEC has launched into crackdown actions towards two high cryptocurrency exchanges, Binance and Coinbase itemizing a number of digital belongings on the platforms as unregistered securities.

Amid this growth, Robinhood Markets Inc. is reviewing its crypto choices, as a June 6 Bloomberg report revealed. 

Robinhood Authorized Chief Testifies At A Congress Listening to On Crypto Regulation

Robinhood Markets’ chief authorized officer, Dan Gallagher, instructed US Congress on Tuesday, June 6, that the brokerage agency needs to evaluate SEC’s evaluation to find out what to do. On June 6, the Home Committee of Agriculture convened a listening to tagged “The Way forward for Digital Belongings: Offering Readability for Digital Belongings Spot Markets.”

Associated Studying: Polygon Continues To Battle As MATIC Alternate Provide Spikes

Having beforehand served as an SEC commissioner, Gallagher testified earlier than the Home Agriculture Committee within the listening to. Former CFTC chairman Christopher Giancarlo, Coinbase authorized chief Paul Grewal, CFTC chairman Rostin Behnam, and Dan Gallagher, former commissioner, have been all current within the listening to.

Whereas talking on the assembly, Gallagher instructed the committee that Robinhood is “actively reviewing the SEC’s evaluation to find out what actions to take, if any.”

A Fast Peek Into SEC’s Lawsuits And Potential Implications

Two days in the past, the SEC sued Binance Holdings, the world’s largest cryptocurrency change, and Coinbase World, the biggest crypto buying and selling platform within the US. The regulator claimed in every lawsuit that over a dozen crypto belongings listed on the exchanges are unregistered securities. 

The record of digital belongings labeled as unregistered securities by the SEC now spans over $120 billion of crypto. The SEC mentioned Coinbase is working an unlawful crypto change, alleging that the agency intentionally selected to not register its providers, placing traders in danger.

Additionally, the SEC sued Binance with an identical offense, alleging that the crypto change violated securities regulation by permitting US clients to commerce on Binance.com regardless of the ban on such providers. The regulator accused Binance.US of commingling billions of {dollars} in consumer funds to a European firm managed by its CEO, Changpeng Zhao.

The lawsuit might have an effect on the crypto belongings tagged securities by the SEC on different platforms. As Gallagher revealed, Robinhood, one of many largest inventory brokerage corporations within the nation, is already reviewing its cryptocurrency choices.

Robinhood permits its customers to entry a restricted variety of digital belongings and customers can solely select from about 18 tokens listed on the platform. This contrasts with Coinbase and Binance, which have lots of of asset choices for customers. 

Nevertheless, among the belongings listed on Robinhood Markets, together with Solana (SOL), Cardano (ADA), Sandbox (SAND), and Polygon (MATIC), have been deemed as securities by the SEC in its latest lawsuits. Whether or not Robinhood will resolve to delist these tokens after its opinions or pursue related registration stays unsure.

Featured picture from Pixabay and chart from TradingView.com