Investment platform Robinhood will stop help for Cardano (ADA), Polygon (MATIC), and Solana (SOL) cryptocurrencies from 6:50 p.m. (EST) on June 27, 2023. The transfer comes because the Securities and Exchange Commission (SEC) steps up its unprecedented crackdown on crypto property.
For all its reputation, Robinhood just isn’t immune to stress from regulators bent on curbing the usage of tokens they deem to be unregistered securities. This determination follows a current overview of the cryptocurrencies supplied on the platform.
Robinhood Plays It Safe With the SEC
The platform gives commission-free buying and selling of shares, choices, ETFs, and cryptocurrencies. The firm initially centered on conventional investing. However, Robinhood expanded its companies to embody cryptocurrency buying and selling in 2018.
Learn the place finest to commerce digital property:
Users who at present maintain ADA, MATIC, and SOL can proceed to purchase, promote, and maintain these cryptocurrencies. Users have the choice to switch ADA, MATIC, and SOL till June 27, besides in the event that they reside in Hawaii, Nevada, or New York.
After the deadline, any remaining ADA, MATIC, and SOL in a Robinhood account might be offered at their market worth. Robonhood will credit score the proceeds from the gross sales to the merchants’ Robinhood accounts. Users even have the choice to ship them to one other wallet or crypto platform.
The transfer comes as a response to the SEC just lately designating a variety of cryptoassets as unregistered securities. The buying and selling platform is probably going attempting to keep away from any regulatory scrutiny from Gensler’s SEC. It just isn’t laborious to see why a agency would need to keep away from any issues.
This week, the company introduced lawsuits towards Binance and Coinbase, the 2 largest crypto exchanges. Both face expenses of breaking a number of securities legal guidelines. Both exchanges deny any wrongdoing. But, given how different high-profile enforcement actions involving the likes of Ripple have performed out, they could be nearer to the start than the top of their authorized troubles.
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