- Robinhood is re-evaluating its cryptocurrency choices following current SEC motion.
- The SEC has decided that sure cryptocurrencies akin to Solana, Cardano and Polygon listed on Robinhood are unregistered securities.
- This growth coincides with the continued debate concerning the regulation of cryptocurrencies, together with the current congressional debate on the invoice.
In mild of current actions by the US Securities and Change Fee (SEC), Robinhood Markets Inc. is reevaluating its cryptocurrency providing. Dan Gallagher, Robinhood’s head of authorized affairs and a former SEC commissioner, briefed Congress on the assessment throughout a gathering targeted on digital belongings.
In an effort to keep away from conflicts with the SEC, Robinhood is reportedly trying to take away sure cryptocurrencies akin to Solana, Cardano and Polygon. It is amongst 18 cryptocurrencies at present listed on Robinhood, in comparison with tons of on Coinbase. They’ve been recognized as unregistered securities by the SEC and will have authorized implications.
The potential delisting of those common cryptocurrencies may have a significant impression on Robinhood customers, because the platform solely helps a restricted choice of 18 cryptocurrencies in comparison with Coinbase’s tons of. The record at present contains Cardano, Solana, and Polygon, all of which had been added to Robinhood lower than a 12 months in the past, increasing the platform’s cryptocurrency 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 take away these cryptocurrencies to adjust to US securities legal guidelines.
Current developments additionally reveal that Coinbase and the Commodity Futures Buying and selling Fee (CFTC) on June 6. testified in Congress to debate the cryptocurrency invoice. The invoice goals to set clear boundaries for when digital currencies needs to be thought of securities or commodities and after they shouldn’t be topic to regulation.
Coinbase Chief Authorized Officer Paul Grewal 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 ideas on the proposed rulemaking, which was launched on June 2.
As well as, the fee additionally filed a lawsuit towards Binance, one of many world’s largest cryptocurrency exchanges. The lawsuit alleges that Changpeng Zhao, Binance’s founder, controls the corporate’s US operations, opposite to the corporate’s public assertions.
