Robinhood Now Considers Delisting SOL, ADA, And MATIC After SEC Lawsuits: Report

Key Points:

  • Robinhood is considering delisting SOL, ADA, and MATIC amid the SEC lawsuit against Binance and Coinbase.
Robinhood is reportedly considering delisting several tokens named in the SEC lawsuit against Binance and Coinbase this week. The tokens in question include Solana (SOL), Cardano (ADA), Polygon (MATIC), and others.
Robinhood Now Considers Delisting SOL, ADA, And MATIC After SEC Lawsuits

The Securities and Exchange Commission (SEC) has filed lawsuits against these two leading cryptocurrency exchanges over the past few days, alleging that they traded unregistered securities.

Regarding Coinbase, the SEC alleges that the US exchange has offered and sold securities without registering its offers and sales. The assets that Coinbase makes available include crypto asset securities, and the SEC alleges that the following tokens are securities: SOL, ADA, MATIC, FIL, SAND, AXS, CHZ, FLOW, ICP, NEAR, VGX, DASH, and NEXO.

Meanwhile, Binance was accused of mishandling customer funds and lied to regulators and investors about its operations, saying that two Binance-linked tokens, BNB and BUSD, were securities the firm improperly offered and sold. The regulator also claimed that Binance and its US affiliate weren’t independent of each other and improperly functioned as an exchange, broker-dealer, and clearing agency without registering.

Robinhood Now Considers Delisting SOL, ADA, And MATIC After SEC Lawsuits

As a result, Robinhood’s legal chief, Dan Gallagher, has testified before the House Agriculture Committee that the brokerage is actively reviewing the regulator’s analysis to determine what actions to take.

Although Robinhood offers access to 18 different crypto assets, compared to Coinbase’s hundreds, some of the tokens offered by Robinhood, including SOL, ADA, and MATIC, are among those deemed unregistered securities by the SEC based on the lawsuits this week. This development has raised concerns about the future of these tokens and other crypto assets Robinhood offers.

Given the regulatory scrutiny, Robinhood is now taking a fresh look at its cryptocurrency offerings and considering its next steps. The brokerage is “actively reviewing” the regulator’s analysis “to determine what, if any, actions to take,” according to Gallagher. The SEC lawsuits against Binance and Coinbase mark a significant crackdown on the cryptocurrency industry, and Robinhood’s response will be closely watched.

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