Delisting Effective June 27, 2023
According to Robinhood’s official announcement, the platform will no longer provide exposure to these three crypto assets as of June 27, 2023. This decision urges users to sell or transfer their holdings before the specified deadline.
Cardano, MATIC, and Solana Delisted
Crypto Slate reported that this move was taken after the US Securities and Exchange Commission (SEC) classified the native coins of these blockchain networks as securities in their lawsuit against Coinbase and Binance.
The SEC’s lawsuit against Coinbase and Binance revealed that the regulatory body considers the native coins of Cardano, Polygon, and Solana networks to be securities. According to the SEC, these coins were initially issued as investment contracts for the companies behind them, with buyers reasonably expecting profits from their investments.
“These coins (Cardano, Polygon, and Solana) meet the definition of investment contracts and fall under the category of securities based on the Howey Test,” said SEC Chairman, Gary Gensler.
Other Cryptocurrencies Mentioned in the SEC Lawsuit
The SEC’s lawsuit also includes other cryptocurrencies such as FIL, SAND, AXS, CHZ, FLOW, ICP, NEAR, VGX, DASH, and NEXO.
Popular Meme Coins Remain Safe
On the other hand, U Today reported that popular meme coins like Dogecoin (DOGE) and Shiba Inu (SHIB) are still unaffected as they were not mentioned in the lawsuit and will continue to be available on the Robinhood platform.
SEC’s Stance on Cryptocurrencies
Currently, it remains unclear whether the SEC will expand the list to include other cryptocurrencies. Nevertheless, the Commission has taken a firm stance on digital assets.
As this case progresses, the implications for the crypto industry will be determined in the court, shifting the discussion from public opinion to legal debates.