- Robinhood is reassessing its cryptocurrency choices following latest SEC actions.
- The SEC has recognized sure cryptocurrencies reminiscent of Solana, Cardano, and Polygon listed on Robinhood as unregistered securities.
- This growth coincides with ongoing debate over cryptocurrency regulation, together with a latest debate in Congress over a invoice.
Following latest actions by the USA Securities and Change Fee (SEC), Robinhood Markets Inc. is re-evaluating its cryptocurrency choices. Dan Gallagher, Robinhood’s chief authorized officer and former SEC commissioner, briefed Congress on the assessment throughout a gathering centered on digital belongings.
In an effort to keep away from any battle with the SEC, Robinhood is reportedly contemplating delisting sure cryptocurrencies reminiscent of Solana, Cardano, and Polygon. These are among the many 18 cryptocurrencies presently listed on Robinhood, in comparison with tons of on Coinbase. They’ve been recognized as unregistered securities by the SEC, which raises the potential for authorized implications.
The potential delisting of those well-liked cryptocurrencies might have a huge effect on Robinhood customers, because the platform solely helps a restricted collection of 18 cryptocurrencies, in comparison with tons of on Coinbase. This listing presently consists of Cardano, Solana, and Polygon, all of which have been added to Robinhood lower than a yr in the past as a part of an enlargement of the platform’s crypto choices.
If the lawsuit is profitable and these cryptocurrencies are discovered to be securities that haven’t been correctly registered, Robinhood could also be required to delist these cryptocurrencies to stay compliant with US securities legal guidelines.
The newest developments additionally reveal that Coinbase and the Commodity Futures Buying and selling Fee (CFTC) testified earlier than Congress on June 6 to debate a cryptocurrency invoice. The invoice goals to determine clear boundaries for when digital currencies needs to be handled as securities or commodities and once they shouldn’t be topic to regulation.
Paul Grewal, Chief Authorized Officer of Coinbase, expressed help for the invoice, urging regulators to behave rapidly to make sure a transparent path for cryptocurrency innovation. CFTC Chairman Rostin Behnam additionally shared his views on the invoice, which was launched on June 2.
Moreover, the fee additionally filed a lawsuit towards Binance, one of many largest cryptocurrency exchanges on this planet. The lawsuit alleges Changpeng Zhao, the founding father of Binance, controls the corporate’s US operations, opposite to the corporate’s public claims.
