Digital trading company Robinhood has announced its decision to discontinue support for three prominent cryptocurrencies, namely Cardano (ADA), Polygon (MATIC), and Solana (SOL), starting from June 27.
In light of this development, the company has advised its users to either sell or transfer their holdings before the specified deadline. If users fail to take action, the tokens will be automatically sold and converted into buying power within the app.
Robinhood attributed this decision to a routine review of the sector but did not disclose the specific reasons behind the delisting.
These three cryptocurrencies, along with other native tokens such as FIL, SAND, AXS, CHZ, FLOW, ICP, NEAR, VGX, DASH, and NEXO, were recently labeled as securities by the US Securities and Exchange Commission (SEC). The SEC asserted that these tokens meet the definition of an investment contract, falling under the category of securities, based on the Howey Test. The regulator’s lawsuits against Coinbase and Binance played a role in shaping this classification.
SEC Chair Gary Gensler clarified the SEC’s standpoint, stating that buyers of these tokens reasonably expected their investments to contribute to the growth of the respective projects and yield profits.
It remains unclear whether Robinhood’s decision to delist these cryptocurrencies was influenced by the SEC’s recent enforcement actions. However, as Robinhood primarily operates in the U.S. market, complying with regulatory requirements is crucial for the company’s survival.
The impact of the SEC’s actions and whether other cryptocurrencies will be added to the list of securities in the future remains uncertain. With the SEC’s position now officially established and lawsuits filed, the matter will shift from public opinion to the courts.
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