In a move triggered by the Securities and Exchange Commission's (SEC) classification of Solana (SOL), Cardano (ADA), and Polygon (MATIC) as securities, Robinhood has announced the delisting of these tokens. The US-based trading firm cited the SEC's claims and the resulting uncertainty as the reason for discontinuing support. The delisting will take effect on June 27th, 2023, at 6:59 PM ET, after which any remaining SOL, ADA, and MATIC in users' Robinhood Crypto accounts will be sold at market value. The proceeds will be credited to users' Robinhood buying power. The announcement clarified that other coins remain unaffected by this decision. The development teams behind Polygon, Solana, and Cardano have disputed the SEC's classification. Robinhood's action comes amidst the SEC's intensified scrutiny of Binance and Coinbase, both accused of operating illegal exchanges.
Robinhood's chief legal officer, Dan Gallagher, disclosed that the company had been actively reviewing tokens following the SEC's analysis. He revealed that Robinhood had attempted to register as a special-purpose broker for digital assets, a process that lasted 16 months. However, in March, the SEC staff informed Robinhood that their efforts would not yield any results. Gallagher's testimony aligned with Coinbase's chief legal officer, Paul Grewal, who criticized the SEC for failing to provide a response or alternative proposals after months of discussions regarding the exchange's registration.
The delisting of SOL, ADA, and MATIC by Robinhood represents a significant development in the ongoing regulatory challenges faced by the cryptocurrency industry. The SEC's classification of these tokens as securities highlights the complexities and uncertainties surrounding the regulatory landscape. The actions of major platforms like Robinhood, Binance, and Coinbase are being closely monitored by market participants, as they navigate the evolving regulatory environment. The outcome of these regulatory battles will likely have a profound impact on the future of cryptocurrencies and the way they are traded and regulated.