Trading giant Robinhood is reportedly delisting a handful of prominent crypto assets in response to the U.S. Securities and Exchange Commission (SEC) suing Binance and Coinbase for allegedly violating securities laws.
According to a new report by Bloomberg, Robinhood’s chief legal officer, Dan Gallagher, told members of Congress that the firm is delisting smart contract platforms Solana (SOL), Cardano (ADA), and Polygon (MATIC) after the SEC cracked down on the digital asset industry earlier this week.
In addition, Gallagher told the House Agriculture Committee that Robinhood will also be reviewing its crypto options moving forward.
Gallagher, who himself is a former commissioner of the regulatory agency, says that Robinhood is “actively reviewing” the SEC’s complaints “to determine what, if any, actions to take.”
Earlier this week, the SEC filed lawsuits against both Binance and Coinbase, the two biggest crypto exchange platforms in the world, for allegedly violating securities laws.
Robinhood, a popular asset trading platform that mainly deals with stocks, also offered 18 crypto assets to customers before announcing it will be delisting SOL, ADA, and MATIC.
According to the report, the SEC’s lawsuits indicate that the three digital assets qualify as securities and thus offering them would qualify as selling unregistered securities.
News of the delisting sent the trio of assets downwards. SOL is trading for $18.62 at time of writing, a fractional decrease during the last 24 hours while ADA and MATIC are moving for $0.311 and $0.762 respectively, a 5.2% and 2% decrease on the day.
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