Robinhood Delists Cardano, Polygon and Solana Following SEC Labeling Them As Securities

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Sarah Wynn

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Sarah Wynn

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June 26, 2023 06:55 EDT

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Brokerage firm Robinhood has decided to delist Cardano, Polygon and Solana after the US Securities and Exchange Commission said those three were securities in its charges against two large crypto exchanges this week.

Robinhood said it would end support for the three on June 27, and said that investors could still buy, sell and hold ADA, MATIC and SOL until the deadline. 

“All other crypto you hold on Robinhood will not be affected,” the firm said in a press release on Friday. 

Robinhood said investors don’t have to sell ADA, MATIC and SOL and can send them to another wallet or crypto firm, however any leftover will be automatically sold and credited. 

SEC’s crackdown on exchanges

The SEC has been busy this past week.

The agency sued both Binance, the world’s largest crypto exchange, and Coinbase, the largest US-based crypto exchange, on Monday and Tuesday. 

In the charges, the SEC said ADA, MATIC and SOL, along with others, were securities. 

This week Dan Gallagher, Robinhood’s legal chief and former SEC commissioner, told Congress that Robinhood was reviewing the regulator’s analysis to determine if any actions needed to be taken, Bloomberg reported Wednesday.  

The SEC sued Binance and its CEO Changpeng Zhao over their “blatant disregard” of securities laws, including operating an exchange illegally and defrauding investors. 

Days later, new documents have revealed that “large amounts of money” were moved around in Binance accounts, according to an accountant for the SEC. 

“The transactions in many of the Binance or Zhao-owned company accounts held at Silvergate Bank and Signature Bank show large amounts of money flowing in and out of the accounts,” the accountant said. “The large incoming credits are followed by outgoing debits within days, with the result that the accounts maintain a relatively much lower balance at month’s beginning and end.”

A day after suing Binance, the SEC sued Coinbase and said it was unlawfully operating its exchange without registering with the agency. 

The regulator also charged the US crypto exchange for the unregistered offer and sale of securities related to its staking-as-a-service program.