Cardano, Solana, Polygon, and about sixty other cryptocurrencies are at risk of being removed from trading platform Robinhood as a result of a recent lawsuit launched by the Securities and Exchange Commission (SEC).
Trading platform Robinhood in action
Cardano (ADA), Solana (SOL), and Polygon (MATIC) are at risk of being removed from the Robinhood trading platform. This looming situation comes in the wake of recent legal actions taken by the US Securities and Exchange Commission (SEC) against Binance and Coinbase.
Robinhood has indicated that it may be necessary to remove certain cryptocurrencies in the coming period. This mainly concerns the coins involved in the SEC lawsuit.
If a cryptocurrency is found to act as a security and is not registered with the SEC, it is illegal for US trading platforms, such as Robinhood, to offer it for trading. If the SEC prevails in this case, Robinhood will likely be forced to remove these cryptocurrencies from its platform in order to remain in compliance with US securities laws.
According to the SEC, a number of commonly traded cryptocurrencies, including Cardano, Solana, and Polygon, are in fact securities that have not been properly registered.
The risk of Cardano being taken down comes less than a year after the addition of this cryptocurrency to Robinhood. The online broker, which is listed on the Nasdaq, added ADA support in September 2022, as part of a larger expansion of Robinhood’s crypto offerings. Robinhood started offering cryptocurrencies in early 2018.
