Robinhood Removes Solana (SOL), Cardano (ADA), Polygon (MATIC) After SEC Claims

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US trading firm Robinhood has announced the delisting of Solana (SOL), Cardano (ADA) and Polygon (MATIC) after the Securities and Exchange Commission (SEC) ruled them as securities in lawsuits against two crypto heavyweights.

The company, which recently ventured into crypto, said the SEC assertion cast a cloud of uncertainty around these assets and as a result, its team decided to end support for them.

SEC pressure intensifies

Robinhood has decided to end support for all three tokens on June 27, 2023 at 6:59 p.m. ET. Any remaining ADA, MATIC, and SOL in the user’s Robinhood Crypto account after the deadline will be sold at market value.

Proceeds, on the other hand, will be credited to their Robinhood purchasing power. The brokerage also confirmed that no other coins were affected. The official statement read,

“You can continue to buy, sell and hold ADA, MATIC and SOL until the deadline. You can transfer ADA, MATIC and SOL until June 27, 2023. (If you live in Hawaii or Nevada, you cannot not buy ADA, MATIC and SOL. If you live in New York, you cannot transfer ADA, MATIC and SOL.)”

The development teams behind the three projects – Polyogn, Solana and Cardano – have fired SEC claim. Meanwhile, Robinhood’s decision comes amid the SEC repression on Binance and Coinbase, which have been accused of operating illegal exchanges by the agency.

Inefficiencies within the SEC

Earlier this week, Robinhood Chief Legal Officer Dan Gallagher said the company was “actively reviewing” the tokens following the agency’s analysis. While bear witness Before the House Agriculture Committee on Tuesday, Gallagher, who previously served as SEC commissioner, said Robinhood tried to register with the agency as a specialty broker for digital assets and followed a 16 month process.

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However, in March, SEC staff told Robinhood that the process was complete and they “wouldn’t see any fruit from this effort.”

Gallagher’s testimony echoes Coinbase’s chief legal officer, Paul Grewal’s complaint that the crypto exchange has failed to gain registration despite months of discussions. He blamed the SEC for rejecting the platform’s attempts without a response or counter-proposal.

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