Robinhood Faces Potential Delisting of Prominent Cryptocurrencies
Popular cryptocurrencies such as Cardano (ADA), Solana (SOL), and Polygon (MATIC) are at risk of being delisted from the Robinhood trading platform due to a lawsuit filed by the U.S. Securities and Exchange Commission (SEC).
According to Bloomberg's report, Robinhood has indicated that it may delist tokens associated with the ongoing SEC lawsuit targeting two major cryptocurrency trading platforms, Binance and Coinbase.
In the United States, if a cryptocurrency is deemed a security and has not been registered with the SEC, it is illegal for exchanges like Robinhood to facilitate trading of those tokens. Therefore, if the SEC's lawsuit is successful, Robinhood would need to delist these cryptocurrencies to comply with U.S. securities laws.
The SEC argues that several widely traded cryptocurrencies, including Cardano, Solana, and Polygon, are securities that have not been properly registered. This potential delisting of Cardano comes less than a year after it was added to the Robinhood platform, demonstrating a swift change in the regulatory landscape.
Robinhood's decision to add ADA support in September 2022 was part of a broader expansion in their cryptocurrency offerings. However, with the SEC's legal actions, the fate of these cryptocurrencies on the Robinhood platform remains uncertain.
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