Robinhood, a stock and cryptocurrency trading app, announced that they will be discontinuing support for Cardano, Polygon, and Solana tokens. These tokens have been marked as unregistered securities by the United States Securities and Exchange Commission (SEC) in recent regulatory actions against crypto exchanges Binance and Coinbase.
In its June 9 update announcement, Robinhood said it will end support for these three tokens starting June 27 after conducting a review. The company cited SEC actions as the reason for the decision, and suggested that the Coinbase and Binance lawsuits have caused a degree of uncertainty around these tokens — the only three cases where Robinhood support.
“We believe in the future of crypto and will continue to advocate for regulatory clarity in the United States so customers can enter the market with more confidence,” Robinhood stated.
On June 5, the United States Securities and Exchange Commission (SEC) filed a lawsuit against Binance for allegedly offering unregistered securities. The regulator has also made similar allegations against Coinbase, a US cryptocurrency exchange. In it, the SEC has named 13 tokens, including Cardano (ADA), Polygon (MATIC) and Solana (SOL), as unregistered securities.