US-based trading firm Robinhood announced the delisting of Solana (SOL), Cardano (ADA), and Polygon (MATIC) after the Securities and Exchange Commission (SEC) labeled them as securities in the suits against two crypto heavyweights.
The company, which recently ventured into crypto, said the SEC’s claim cast a cloud of uncertainty around these assets and, as a result, its team decided to end support for them.
SEC’s Pressure Intensifies
Robinhood decided to end support for the three tokens on June 27th, 2023, at 6:59 PM ET. The leftover ADA, MATIC, and SOL in the user’s Robinhood Crypto account after the deadline will be sold for market value.
The proceeds, on the other hand, will be credited to their Robinhood buying power. The brokerage firm also confirmed that no other coins have been affected. The official statement read,
“You can continue to buy, sell and hold ADA, MATIC, and SOL until the deadline. You will be able to transfer ADA, MATIC, and SOL until June 27th, 2023. (If you live in Hawaii or Nevada, you can’t buy ADA, MATIC, and SOL. If you live in New York, you can’t transfer ADA, MATIC, and SOL.)”
The development teams behind the three projects – Polyogn, Solana, and Cardano – have dismissed SEC’s claim. Meanwhile, Robinhood’s decision comes amidst the SEC’s crackdown on Binance and Coinbase, which were accused of operating illegal exchanges by the agency.
Inefficiencies Within SEC
Earlier this week, Robinhood’s chief legal officer Dan Gallagher said the company was “actively reviewing” tokens after the agency’s analysis. While testifying before the House Agriculture Committee on Tuesday, Gallagher, who previously served as a Commissioner at the SEC, said Robinhood tried to register with the agency as a special-purpose broker for digital assets and went through a 16-month process.
However, by March, the SEC staff told Robinhood that the process was over and they “would not see any fruits of that effort.”
Gallagher’s testimony echoes Coinbase’s chief legal officer, Paul Grewal’s complaint that the crypto exchange failed to secure a registration despite months of discussions. He blamed the SEC for dismissing the platform’s attempts with no response or any counter-proposal.