In response to the increasing regulatory crackdown on major exchanges like Coinbase and Binance, Robinhood, the popular commission-free trading platform, has announced its decision to delist Cardano (ADA), Polygon (MATIC), and Solana (SOL). This move positions Robinhood as the first exchange or brokerage to delist these digital currencies, identified as investment contracts by the United States Securities and Exchange Commission (SEC).
Kaiko, a major crypto research platform, shared on Twitter about the delisting of ADA, MATIC, and SOL:
🚨Robinhood to de-list $ADA, $SOL, and $MATIC🚨
— Kaiko (@KaikoData) June 9, 2023
All three tokens are down more than 10% since Monday. pic.twitter.com/frf7RzSOqQ
Confirming the earlier rumors, Robinhood’s announcement today solidified its stance on delisting the SEC-designated assets. The platform has advised its users to transfer their holdings before the deadline of June 27th, when support for ADA, MATIC, and SOL would officially end.
While users would still have the opportunity to transfer the affected cryptocurrencies until the specified date, those who choose not would have their funds liquidated at the prevailing market rate, with the resulting funds credited to their Robinhood buying power.
Robinhood assured its users that apart from the delisted tokens, no other cryptocurrencies available for trading on its platform would be affected. The platform also emphasizes the safety of users’ assets, aiming to prevent panic selling and maintain confidence among its user base.
The delisting of tokens flagged as securities by the SEC is not uncommon within the cryptocurrency ecosystem. Coinbase, facing intense scrutiny from regulatory authorities, was in a similar situation when XRP was indicted. In December 2020, following the SEC’s lawsuit against Ripple Labs, Coinbase swiftly delisted XRP, joining several other exchanges in distancing themselves from the embattled digital currency.
For Robinhood, maintaining compliance with regulatory requirements remains a priority. As a brokerage that recently entered the digital currency space, loyalty to the affected tokens does not run deep. By taking proactive measures and delisting the SEC-designated assets, Robinhood aims to uphold its commitment to regulatory compliance and navigate the evolving legal landscape surrounding cryptocurrencies.
