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Robinhood, one of the common buying and selling platforms in america, has introduced to its tens of millions of consumers that it’ll not assist sure cryptocurrencies which were designated as “securities” by the US Securities and Change Fee (SEC).
In a discover despatched to its clients, Robinhood said that it could halt withdrawals of Solana (SOL), Polygon (MATIC), and Cardano (ADA) on June 26, 2023, and buying and selling of those tokens might be halted on June 27, 2023.
The transfer by Robinhood comes because of the continuing regulatory crackdown on cryptocurrency exchanges, together with Binance and Coinbase, that are dealing with lawsuits over allegations of promoting unregistered securities.
Robinhood Ceases Help For SEC-Regulated Cash
In a discover despatched to its clients, Robinhood said that it could not assist the tokens that the SEC has designated as securities, citing regulatory uncertainty as the explanation for the transfer.
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It is very important observe that this resolution solely impacts SOL, MATIC, and ADA, and never different cryptocurrencies supported by the platform. Customers will nonetheless have the ability to commerce and withdraw different cryptocurrencies on Robinhood.
This transfer by Robinhood is probably going a response to the SEC’s elevated scrutiny of cryptocurrency exchanges and their choices. The SEC has deemed sure cryptocurrencies, together with XRP, ADA, SOL, and MATIC to be securities, and exchanges that supply these tokens could also be topic to regulatory motion.
Robinhood halts assist for ADA, MATIC, and SOL
By halting assist for sure tokens designated as securities, Robinhood is probably going making an attempt to guard itself from potential regulatory motion and guarantee compliance with SEC necessities.
The SEC’s crackdown on cryptocurrency exchanges is seen as a part of a broader effort to control the cryptocurrency market, which has grown quickly lately. Whereas cryptocurrencies like Bitcoin and Ethereum will not be thought of securities by the SEC, different tokens, equivalent to these bought in preliminary coin choices (ICOs), have been deemed to be securities, and are topic to the identical regulatory necessities as conventional securities.
It stays to be seen how different exchanges and buying and selling platforms will reply to the SEC’s crackdown on cryptocurrencies designated as securities. Nevertheless, the transfer by Robinhood is more likely to be seen as a major improvement within the ongoing regulatory debate surrounding cryptocurrencies and their place within the monetary panorama.
Featured picture from Unsplash, chart from TradingView.com
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