Robinhood To Delist ADA, MATIC & SOL Following SEC’s Crackdown 14
The Robinhood logo is seen an illustration taken July 2, 2021. REUTERS/Dado Ruvic/Illustration

Robinhood To Delist ADA, MATIC & SOL Following SEC’s Crackdown

  • Robinhood has announced that it will delist three crypto tokens named in the SEC’s recent lawsuits against crypto exchanges. 
  • After June 27, users will not be able to trade Cardano (ADA), Polygon (MATIC), and Solana (SOL) on the trading platform. 
  • Robinhood took the decision after reviewing its crypto offerings in light of recent developments in the market. 
  • Cardano founder Charles Hoskinson criticized US regulators for creating an environment of fear. 

Robinhood Markets Inc. has decided to delist three crypto tokens from its online trading platform in light of recent developments in the crypto market. The tokens, Cardano (ADA), Polygon (MATIC), and Solana (SOL), were named in the lawsuits filed by the Securities and Exchange Commission (SEC) against Binance and Coinbase earlier this week. All three tokens were described as securities in the complaints. 

Robinhood Will Delist The Tokens on June 27

According to a blog post by Robinhood, the decision to end support for ADA, MATIC, and SOL was taken after conducting a review of the platform’s crypto offerings. The tokens will be removed from the online trading platform on June 27, 2023, at 6:59 PM ET. The discount brokerage assured its customers that the extent of the delisting was limited to just those three tokens. 

In the meantime, the platform’s customers will be allowed to buy, sell and hold ADA, MATIC, and SOL. Following the June 27 deadline, all ADA, MATIC, and SOL will be sold at market value. The proceeds will be transferred to the customers’ wallets. Earlier this week, Robinhood’s Chief Legal Compliance testified before the U.S. House Committee for Agriculture where he revealed that when the firm attempted to register itself with the SEC as a special purpose broker-dealer, they were met with unhelpful conduct. 

The legislative branch needs to lead by passing commonsense, consumer-oriented legislation to restore clarity and integrity to the US crypto markets.”

Charles Hoskinson, founder of Cardano 

Commenting on Robinhood’s decision to delist ADA, Cardano founder Charles Hoskinson told Fox Business that the blame goes to the country’s regulators for creating an environment of fear where there is a lack of clarity and contradictory guidance instead of collaboration with rule makers. According to Hoskinson, entities will leave markets if regulators continue their hostile stance towards crypto.