Robinhood Drops Support for Cardano, Polygon, and Solana Following SEC Lawsuits Against Coinbase and Binance

The popular trading app Robinhood has announced that it will no longer support three cryptocurrencies, Cardano (ADA), Polygon (MATIC), and Solana (SOL), starting from June 27, 2023. The decision comes after the U.S. Securities and Exchange Commission (SEC) filed lawsuits against major exchanges Coinbase and Binance, alleging that these three tokens were unregistered securities. Robinhood users have until the deadline to withdraw or sell these assets for fiat currency or other eligible assets on the platform. After that, the assets will be sold at market prices, and the proceeds will be given to the users.

The move by Robinhood follows the cloud of uncertainty created by the SEC lawsuits against Coinbase and Binance. The lawsuits brought securities law violations as a common charge against the two exchanges, including the allegation that ADA, MATIC, and SOL were unregistered securities. Robinhood’s regulatory compliance head, Dan Gallagher, testified before the House Agriculture Committee, stating that the company was actively reviewing its cryptocurrency offerings.