- The ongoing battles between the SEC and crypto organizations have sent Robinhood back to the drawing board to figure out whether to keep or delist crypto assets seen as securities
- The crypto and stocks trading exchange is seeking to keep its hands clean off of possible scuffles with a hawkish SEC
- The crypto assets that Robinhood is weighing on delisting include SOL, ADA, and Polygon Matic
Robinhood: no trading crypto assets in the US SEC securities list
Robinhood has returned to the drawing board to try and minimize its chances of picking legal fights with the U.S. SEC. The exchange seeks to delist several crypto assets the regulator sees as securities to avoid defending themselves in court and incurring extra costs.
Robinhood wants to do away with Solana, Cardano, and Polygon Matic trading following recent charges that the U.S. SEC has been pressing. The SEC sued Binance.US on May 5, claiming it offered securities to U.S. citizens while not being registered as a securities broker.
A day later, the regulator went after Coinbase alleging that the exchange is also an unregistered securities broker that is putting investors at risk. The regulator has been in this frenzy for quite some time as it spent the better part of last year going after celebrities and big names in the crypto industry for promoting securities via paid promotions and not disclosing that they had been paid.
It also began the year by charging Kraken crypto exchange $30 million in fines and ordering it to close down its crypto staking program in the U.S., alleging that it’s a security that risks the monies of U.S. citizens. As such, it is a message enough that platforms like Robinhood that offer crypto assets trading in the U.S. should be more selective with their products.
In this context, Robinhood has seen it fit to delist some of the tokens highly contested as securities by the exchange until more clarity is available. Keep watching Fintech Express for updates on crypto and other Fintech-related developments.