Robinhood reconsiders its crypto offerings amid recent SEC lawsuits against Binance and Coinbase.
In the wake of the U.S. Securities and Exchange Commission's (SEC) recent lawsuits against crypto exchanges Binance and Coinbase, Robinhood is reevaluating its cryptocurrency listings, as per a Bloomberg report. The SEC's lawsuits, accusing the exchanges of offering unregistered securities, have spurred this reconsideration.
Dan Gallagher, Robinhood's Chief Legal Officer, announced that the brokerage firm is scrutinizing its crypto portfolio in response to these legal proceedings. Robinhood currently facilitates the trading of 18 digital assets, including those, such as Solana (SOL), Cardano (ADA), and Polygon (MATIC), implicated as unregistered securities by the SEC.
While Robinhood has yet to delist any cryptocurrencies, the potential removal of these tokens could notably impact their prices. In Q1 2023, Robinhood's crypto revenues stood at $38 million, constituting less than 10% of its total net revenues. Bitcoin, Ethereum, Litecoin, and Dogecoin, significant Proof-of-Work tokens, were not named in the SEC's lawsuits.
With the situation still in flux, the future presence of these digital assets on Robinhood and other major exchanges remains to be seen.
