Robinhood to Cease Support for Cardano, Solana, and Polygon
- Crypto and stock trading platform Robinhood will cease support for Solana, Cardano, and Polygon.
- The company cited the SEC’s action against Coinbase and Binance as the reason for its decision.
- Robinhood will end support for these three coins as they are termed securities by the SEC in the lawsuits.
- The support will end on June 27, and customers have been requested to sell or transfer their assets by then.
Robinhood Markets, a company known for providing stock and crypto trading services to its clients, has announced that it is ending support for the three cryptocurrencies considered securities by the United States Securities and Exchange Commission (SEC) in its lawsuit against Coinbase and Coinbase, the top two largest crypto exchanges in the world by trading volume.
The company noted in an official announcement that these three cryptocurrencies are Solana (SOL), Polygon (MATIC), and Cardano (ADA) and added that the lawsuit against Coinbase and Binance has introduced a “cloud of uncertainty” around these crypto coins since they are now considered securities by the SEC. Robinhood said that it will end support for these coins on June 27.
“We believe in the future of crypto and will continue to advocate for regulatory clarity in the US so that customers can participate in the marketplace with greater confidence,” noted the trading platform.
It is crucial to note that customers can buy, sell, and hold ADA, MATIC, and SOL until the deadline, following which any ADA, MATIC, and SOL still in a customer’s Robinhood Crypto account will be sold for market value and the proceeds will be credited to their buying power on the platform.
However, all the other cryptocurrencies are still available for trading, and traders along with investors can choose to buy them. If a customer belongs to a state where transfers are available, they can also send their SOL, ADA, or MATIC to another wallet.
Meanwhile, Coinbase CEO Brian Armstrong is convinced that it hasn’t listed securities on its platform and will therefore, argue with the SEC in the US courts. The regulator filed a lawsuit against Coinbase a few days ago, and Armstrong stated that his company is ready to face the lawsuit.As reported earlier by Bitnation, the SEC also sued Binance, its US entity Binance.US, along with CEO Changpeng Zhao, also known as CZ in the crypto space. The leading exchange has lost a lot of market share as well.