Robinhood announced on Friday that it would delist Cardano (ADA), Solana (SOL), and Polygon (MATIC) tokens from its platform on June 27, 2023. The company cited "recent regulatory developments" as the reason for the delisting.
The announcement comes just days after the U.S. Securities and Exchange Commission (SEC) filed lawsuits against Binance and Coinbase, alleging that the two exchanges had violated securities laws by listing unregistered tokens. Robinhood is not named in the lawsuits, but the company said that it is "actively reviewing" its own crypto offerings in light of the SEC's actions.
In a blog post, Robinhood said that it "regularly reviews the crypto we offer on Robinhood" and that it had decided to delist ADA, MATIC, and SOL "based on our latest review." The company said that it would allow customers to continue to buy, sell, hold, and transfer the tokens until the delisting date. After that, any remaining tokens in customer accounts would be sold for market value.
The delisting of ADA, MATIC, and SOL is a major blow to the crypto industry. All three tokens are among the top 10 cryptocurrencies by market capitalization, and they have been popular with investors in recent years. The delisting is likely to have a chilling effect on the crypto market, as it sends a signal that the SEC is cracking down on the industry.
It is unclear what the long-term implications of the delisting will be. However, it is a sign that the SEC is taking a more aggressive approach to regulating the crypto industry. This could lead to more lawsuits against exchanges and other crypto businesses. It could also make it more difficult for new crypto tokens to be listed on exchanges.
The delisting of ADA, MATIC, and SOL is a setback for the crypto industry, but it is not a death knell. The industry has survived previous regulatory challenges, and it is likely to do so again. However, the delisting is a reminder that the crypto industry is still in its early stages, and it is subject to a great deal of uncertainty.
