Robinhood, a U.S.-based trading platform renowned for its commission-free trading services, has announced its decision to discontinue support for three cryptocurrencies: Cardano (ADA), Polygon (MATIC), and Solana (SOL). This move, set to take effect from June 27, 2023, comes in the wake of the Securities and Exchange Commission (SEC) charging Binance and Coinbase for offering these cryptocurrencies, which the SEC alleges are unregistered securities.
Robinhood’s announcement provides a detailed timeline and explanation of what this decision means for its users. Until the specified deadline, Robinhood users can continue to buy, sell, and hold ADA, MATIC, and SOL. Furthermore, users will also have the option to transfer these cryptocurrencies until June 27, 2023. However, any ADA, MATIC, and SOL remaining in users’ Robinhood Crypto accounts after the deadline will be automatically sold at market value. The proceeds from these sales will then be credited to the users’ Robinhood buying power, which can be used for future trades on the platform.
Importantly, Robinhood has clarified that this decision only affects ADA, MATIC, and SOL. All other cryptocurrencies available on Robinhood will not be impacted by this change. The company has also reassured its users about the safety of their crypto assets. Robinhood employs industry-leading security measures, including storing nearly all user crypto assets in cold storage, a method that involves keeping cryptocurrencies offline to protect them from potential online threats.
This move by Robinhood is seen as a precautionary measure in response to the SEC’s recent charges against Binance and Coinbase. The SEC’s allegations revolve around these platforms offering ADA, MATIC, and SOL on their trading platforms, which the SEC considers to be an illegal offering of unregistered securities.
Naturally, Robinhood’s decision to delist ADA, MATIC, and SOL is negatively impacting the price of these three cryptoassets. Currently (as of 6:00 a.m. UTC on June 10), ADA, MATIC, and SOL are trading at around $0.245 (-23.03%), $0.60 (-24.40%), and $14.38 (-23.64%) respectively.
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