Robinhood to Delist ADA, SOL, and MATIC After SEC Classification as 'Securities' - Tokenist

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Robinhood will stop supporting ADA, SOL, and MATIC on June 27, 2023.

Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.

Cardano, Polygon, and Solana appear to be the latest victims of the US regulatory heat as stock brokerage firm Robinhood said it plans to end support for the tokens issued by these blockchain firms. According to the announcement, Robinhood will delist ADA, MATIC, and SOL on June 27, 2023 – the three cryptocurrencies that have been also declared as ‘securities’ by the US Securities and Exchange Commission (SEC).

An Estimated 67 Cryptocurrencies are Seen as ‘Securities’ by the SEC

Stock brokerage Robinhood announced on June 9 it will end its support for Cardano (ADA), Polygon (MATIC), and Solana (SOL) on June 27th, 2023, a move that follows the SEC’s most recent clampdown on leading US crypto exchanges, Binance and Coinbase.

More specifically, Robinhood handpicked ADA, MATIC, and SOL as those three cryptocurrencies were among the newest assets that have been designated as “securities” by the regulator. In total, there are an estimated 67 crypto assets that are currently labeled as securities.

“Based on our latest review, we’ve decided to end support for Cardano (ADA), Polygon (MATIC), and Solana (SOL) on June 27th, 2023 at 6:59 PM ET. No other coins are affected and your crypto is still safe on Robinhood.”

– Robinhood in the announcement

The popular stockbroker said no other cryptocurrencies are affected as of now. After removing ADA, MATIC, and SOL, there are still around 15 digital assets available on Robinhood’s platform.

BinanceUS Suspends USD Deposits as Banks Cut Ties

Robinhood’s actions come just a few days after the SEC filed back-to-back against Binance and Coinbase – the world’s two biggest digital asset exchanges by trading volume. Notably, the commission filed 13 charges against Binance and its founder, Changpeng Zhao, accusing them of several transgressions such as offerings of unregistered securities, the comingling of investor funds, and unsuccessfully preventing BinanceUS customers from trading on its global platform.

As a result of the SEC’s legal steps, multiple banking partners of BinanceUS said they would pause the channels to withdraw US dollars from the exchange, forcing the company to halt US dollar deposits and take “proactive steps” to transition into a crypto-only exchange.

A day after suing Binance, the securities watchdog also filed a lawsuit against Coinbase in the New York federal court, charging it with “failing to register the offer and sale of its crypto asset staking-as-a-service program” and “unlawfully facilitating the buying and selling of crypto asset securities.” While the SEC’s actions sent shockwaves throughout the crypto industry, the crackdown on the broader crypto sector lasts for several months now, with the likes of Kraken, Circle, and other crypto-related firms all coming under intense scrutiny.

Do you think the SEC and other crypto regulators are trying to completely push crypto out of US borders? Let us know in the comments below.

About the author

Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird's US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.