Robinhood Drops Support for Three Cryptos
Robinhood discontinues support for Cardano, Polygon, Solana amidst SEC's securities lawsuits.
In response to the U.S. Securities and Exchange Commission's (SEC) lawsuits against crypto exchanges Binance and Coinbase, Robinhood is set to drop support for Cardano (ADA), Polygon (MATIC), and Solana (SOL) from June 27, 2023. The SEC's charges argue that these crypto assets, offered by the exchanges, constitute unregistered securities.
Robinhood has detailed the implications of this decision for its users. Until the deadline, users can still trade and transfer ADA, MATIC, and SOL. However, any residual holdings of these cryptocurrencies post-deadline will be automatically sold at market value, with the proceeds credited to users' Robinhood accounts.
This decision exclusively affects ADA, MATIC, and SOL, with all other cryptocurrencies available on Robinhood remaining unaffected. Robinhood has assured its users about the security of their digital assets, with most of them being stored offline in cold storage.
Viewed as a defensive measure in light of the SEC's charges against Binance and Coinbase, Robinhood's move has already sent ripples through the crypto market. As of 6:00 a.m. UTC on June 10, ADA, MATIC, and SOL have suffered significant price drops, trading at $0.245 (-23.03%), $0.60 (-24.40%), and $14.38 (-23.64%) respectively.
