Robinhood users will have until that day to sell their balances in these crypto assets, according to the announcement. If you do not, the platform will do it automatically.
The American exchange Robin Hood will list three cryptocurrencies starting June 27. These are polygon (MATIC), cardano (ADA) and solana (SOL). All were listed as securities by the United States Securities and Exchange Commission (SEC).
Robinhood users will have until that day to sell their balances in these crypto assets, according to the announcement. If it is not done, the platform will do it automatically. Until then, all operations with the cryptocurrencies involved are enabled.
Robinhood’s decision is due to the fact that the SEC determined in recent hours that these three cryptocurrencies are considered securities and that a special permit is needed to offer services related to them. Others that fall into the same classification for the US government body are BNB, Binance USD (BUSD), filecoin (FIL), cosmos (ATOM), sandbox (SAND), decentraland (MANA), algorand (ALGO), axie infinity (AXS ) and coti (COTI), as reported by CriptoNoticias.
“All other cryptocurrencies you have on Robinhood will not be affected,” add the statement. In turn, users are specified that “depending on the state in which you live, you will be able to continue operating with the rest of the available cryptocurrencies.”
Within minutes of the Robinhood announcement, ADA, SOL and MATIC did not show a strong reaction in terms of their market value. Of course, the three cryptocurrencies maintain a downward trend of more than 10% that has been going on for several days.
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The SEC’s lawsuit
The cryptocurrency market is experiencing turbulent times due to the regulatory pressure that the SEC is exerting on platforms such as Binance and Coinbase and also against cryptocurrencies such as ADA, SOL and MATIC.
The crux of the matter is that the SEC considers that the aforementioned cryptocurrencies are securities that must be traded under license. Since Binance, Coinbase, and Robinhood do not have such permission, they cannot offer such a service to their users. This is also why more exchanges could face the same problem in the short term.
A similar situation was experienced with Ripple (XRP) in late 2020. At that time, a dozen exchanges dropped support for the cryptocurrency, which the SEC had also listed as an unregistered security.
Source: Ambito
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