Carlifornia-based crypto exchange Robinhood in a blog post on Friday, announced it would delist Polygon’s MATIC, Cardano’s ADA, and Solana Lab’s SOL effective June 27 by 6:59 PM ET. Although the exchange did not mention the reason for the delisting, it is believed to be tied to the recent lawsuit the Securities and Exchange Commission (SEC) filed against Binance and Coinbase, where it pronounced these tokens as securities.
The delisting came a few days after Robinhood’s Chief Legal Compliance Officer and former SEC commissioner, Dan Gallagher, stated that the fintech trading app was considering removing the tokens the SEC pronounced securities. Gallagher noted that although the exchange has a broker-dealer license, it could not use it to trade digital assets the regulator declared an unregistered security.
Robinhood Will Convert Tokens After Deadline.
Robinhood noted that it would sell off any of the aforementioned tokens left unconverted in the exchange at market price after the deadline and add them to users’ wallets. The fintech firm also noted that SOL, ADA, and MATIC transactions would continue until the deadline.
The exchange, however, made few exceptions for users that would continue using the tokens before the deadline, noting that Huawei and Nevada residents cannot buy the digital assets. New York habitants also cannot transfer these tokens even before the deadline.
A Cautious Approach
Robinhood has taken a cautious approach to the ongoing legal battle between the two biggest exchanges in the world and the US regulator. The exchange itself has not had it easy in the crypto crackdown and revealed it received a subpoena from the SEC in March.
Robinhood seems to be averting further sanctions from the US regulator by delisting those tokens. The exchange noted that the delisting does not affect other tokens on the platform.
