Robinhood, the popular commission-free trading app, has announced its decision to terminate support for three prominent cryptocurrencies—Cardano (ADA), Polygon (MATIC), and Solana (SOL).
The move comes after the United States Securities and Exchange Commission (SEC) identified a significant number of tokens listed on major exchanges, including Binance and Coinbase, as securities, with Robinhood announcing the move on June 9.
As of now, Robinhood continues offering its users a range of cryptocurrencies by still supporting the likes of Bitcoin, Ethereum, Litecoin, Dogecoin, and Shiba Inu.
Regulatory scrutiny
This development highlights the increasing regulatory scrutiny faced by the cryptocurrency industry. The SEC’s classification of numerous tokens as securities has triggered a wave of repercussions across the crypto landscape. With regulatory bodies aiming to protect investors and maintain market integrity, platforms like Robinhood have begun to review their offerings.
As Robinhood bids farewell to Cardano, Polygon, and Solana due to the SEC’s classification of tokens as securities, the cryptocurrency industry continues to navigate a complex regulatory landscape. Interestingly, Cardano has only been listed on Robinhood for less than a full year.
You asked… @Cardano is now on Robinhood #ADA #CryptoListing https://t.co/30JpA2vPF5 pic.twitter.com/GlXXu3S1lL
— Robinhood (@RobinhoodApp) September 1, 2022
Earlier today, Finbold reported how the price of Cardano had dropped by over 15% in the last week as the SEC’s ‘security’ claims spark uncertainty. It remains to be seen whether the latest news will have further bearish implications on ADA price as well as Solana and Matic.
