Popular trading app Robinhood, which has recently expanded into the cryptocurrency space, announced that it will stop supporting three crypto assets on its platform: Solana (SOL), Cardano (ADA) and Polygon (MATIC).
Robinhood Releases Statement About Delisting Solana (SOL), Cardano (ADA) and Polygon (MATIC) Altcoins
The decision comes after the Securities and Exchange Commission (SEC) sued two major crypto exchanges, Binance and Coinbase, claiming that various cryptocurrencies, including the three mentioned above, are unregistered securities.
Robinhood announced on its official Twitter account that the SEC lawsuits have created a "cloud of uncertainty" around these assets and that its team has decided to end support for these assets.
The statement also stated that customers holding SOL, ADA or MATIC will receive detailed instructions on how to sell and/or withdraw their coins where supported. The delist process will go into effect on June 27.
Robinhood added that he believes in the future of cryptocurrencies and will continue to advocate for regulatory clarity in the US so that customers can participate in the market with greater confidence.
Robinhood's move follows the SEC's action against Binance and Coinbase earlier this week. The SEC accused Binance of "an extensive web of scams, conflicts of interest, lack of information, and planned evasion of the law" and accused Coinbase of failing to comply with US securities law and depriving investors of critical protections.
The SEC also named 13 cryptoassets as unregistered securities in its lawsuits, including SOL, ADA, and MATIC. According to CoinMarketCap, these three tokens are among the top 10 in total market capitalization among all cryptocurrencies.
*Not investment advice.