Cryptocurrency and stock trading app Robinhood has announced it will end support for Cardano, Polygon and Solana all tokens flagged by the US Securities and Exchange Commission (SEC) in recent legal action against cryptocurrency exchanges Binance and Coinbase. unregistered se curities.
In a June 9 update, Robinhood said it would end support for the three tokens starting June 27 following a review. In a Twitter post, the company specifically cited the SEC's actions as the reason for the delisting, saying the lawsuits from Coinbase and Binance“ created uncertainty for the token” the only three cases Robinhood has supported. “We believe in the future of cryptocurrencies and will continue to advocate for regulatory clarity in the US so customers can participate in the market with greater confidence,” Robinhood said.
On June 5, the SEC filed a lawsuit against Binance for allegedly issuing unregistered securities. Regulators later filed similar charges against US cryptocurrency exchange Coinbase, naming 13 tokens including Cardano, Polygon and Solana as unregistered securities.
Dan Gallagher, A Former Sec Commissioner and Chief Legal Compliance and Corporate Affairs Office At Robinhood, Testify at a Converessional Hearing 6 that Operainalin G as a registered broker-dealer in the us right now is like "The Hard Times for Cryptocurrencies." The road". He added that even if Robinhood tried, the path the SEC has laid out for crypto companies would be difficult to follow. "When SEC Chairman [Gary] Gensler in 2021 said, 'Come in and register,' we did," Gallagher said. “We went through the 16-month process with the SEC staff trying to register a special-purpose Broker-dealers, and then we were simply told in March that the process was over and we would not see any fruit of our efforts . "
The SEC case has drawn the ire of many cryptocurrency users, who have pointed to the regulator's inconsistent approach to digital asset companies. For example, the lawsuit against Coinbase charges that the exchange has been operating as an unregistered securities broker since 2019, while the company also went public in April 2021.
Binance.US and Binance CEO Changpeng Zhao were also named in the SEC case against cryptocurrency exchanges for their alleged role in unregistered token offerings and sales, including BNB. The US entity announced on June 8 that it would suspend US dollar deposit ts in response to the SEC's "extremely aggressive and scare tactics."
