2 years ago
U.S.-based integer trading app Robinhood announced contiguous that it volition extremity enactment for 3 large cryptocurrencies connected June 27 — Cardano (ADA), Polygon (MATIC), and Solana (SOL).
The institution advised users to merchantability oregon transportation their holdings earlier the deadline, astatine which constituent the tokens volition beryllium automatically sold and converted to buying powerfulness connected the app.
Robinhood said it made the determination aft 1 of its regular reviews of the assemblage but did not disclose the nonstop crushed down the delisting.
“Investment contracts”
Polygon, Cardano, and Solana’s autochthonal tokens were precocious labeled arsenic securities by the SEC successful its lawsuits against Coinbase and Binance.
The regulator claims these tokens are securities due to the fact that they were initially issued arsenic a fundraising instrumentality for the companies down them and buyers were “reasonably” led to expect that their investments would beryllium utilized to turn the projects which would output profits for them.
SEC Chair Gary Gensler clarified successful public remarks yesterday that, successful the SEC’s view, these tokens conscionable the explanation of an concern contract—itself a class of securities—under the Howey Test. The watchdog’s suit besides lists FIL, SAND, AXS, CHZ, FLOW, ICP, NEAR, VGX, DASH, and NEXO arsenic securities.
Robinhood’s determination to delist 3 of the cryptocurrencies mentioned successful the database from its level comes during the aforesaid week that the SEC filed its landmark lawsuits against the crypto giants. The institution has remained soundless connected whether the enforcement actions influenced the decision.
The company’s superior marketplace is the U.S. and ensuring regulatory compliance is simply a substance of survival.
Whether the SEC volition grow the database to see different cryptocurrencies oregon however its actions volition interaction the manufacture is unclear for now. However, present that the SEC has formally made its presumption known and filed suit accordingly, the question volition present walk from the tribunal of nationalist sentiment to the courts themselves.
The station Robinhood pulls the plug connected MATIC, SOL, ADA amid SEC crackdown appeared archetypal connected CryptoSlate.
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