Robinhood will End Support for These Three Coins on June 27

June 14, 2023

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Robinhood, a financial services provider, announced that it will discontinue its support for Cardano, Polygon, and Solana.

Robinhood to Renounce Support on June 27

Following a study, Robinhood said in a June 9 update that it will stop supporting the three coins as of June 27.

Note that The United States Securities and Exchange Commission (SEC) has labeled all of the three tokens as unauthorized securities in its recent lawsuit against crypto exchanges Binance and Coinbase.

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SEC Action Against Binance and Coinbase to be Blamed

The company specifically blamed the SEC’s action for its delisting in a Twitter thread, claiming that the Coinbase and Binance lawsuits “introduced a cloud of uncertainty” regarding the tokens.

Robinhood noted:

“We believe in the future of crypto and will continue to advocate for regulatory clarity in the U.S. so that customers can participate in the marketplace with greater confidence.”
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TheCoinRise recently reported that the American financial service provider is considering delisting certain other crypto assets as well as the local coin SOL of Solana.

Crypto Exchanges Concerned About the Future

Notably, a number of exchanges are concerned as a result of the SEC’s multiple lawsuits within some days.

Dan Gallaghera, former SEC commissioner and the chief legal compliance and corporate affairs officer of Robinhood told the House Agriculture Committee on Tuesday that they “are actively reviewing the SEC analysis to determine what, if any, actions to take in that regard.”

Gallagher said that the current procedures of operating a licensed broker-dealer in the United States was like “crypto the hard way.”

Robinhood Faced Actions from US Authorities Earlier this Year

According to him, even when Robinhood attempted, it was challenging to fulfill the SEC’s guidelines for crypto businesses.

It is possible that the decision may have been influenced by the exchange’s prior experiences, when it had to deal with difficulty due to legal procedures. Recall that in April, the California Department of Financial Protection and Innovation (DFPI) announced that Robinhood Financial LLC had ultimately agreed to a multi-state compromise of $10.2 million with seven state securities authorities, including itself.