Robinhood might delist cryptos named in SEC’s suit against Coinbase & Binance

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Written on Jun 7, 2023

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To avoid SEC fights, Robinhood may delist assets the regulator deems as securities.
These include Solana, Polygon, and Cardano.
The lawmakers filed suits against Binance and Coinbase for law violations.

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The Securities & Exchange Commission sued the two top exchanges, Coinbase and Binance, citing law violations. While the two prepare to meet the regulator in court, public-listed investment platform Robinhood assesses its crypto offerings to avoid trouble with the lawmakers.

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The latest developments reveal Robinhood might delist cryptocurrencies that SEC deems unlicensed securities. These include Solana, Polygon, and Cardano. Currently, the trading platform has only 18 cryptos listed on its network. That’s contrary to the multiple tokens that you can find in leading exchanges Binance and Coinbase.

????BREAKING: Robinhood will delist $SOL, $MATIC and $ADA.

— Crypto Rover (@rovercrc) June 7, 2023

On 6 June, Robinhood legal chief Dan Gallagher appraised the United States Congress on the ongoing developments. As invezz.com reported, Gallagher was among the officials to testify before Congress on Tuesday (6 June). Gallagher mentioned that the broker is reviewing the analysis by SEC to determine any action, if any.

SEC asks court to freeze Binance US assets

In its latest move, the Securities and Exchange Commission directed the court to freeze Binance US crypto assets to avoid fund dissipation. The regulator stated that Binance US risks the $2.2B of United States client funds, alleging that CZ and Binance have had control over user funds worth billions.

???????? SEC seeks restraining order to freeze #Binance US assets.

— Walletor (@walletorapp) June 7, 2023

SEC lawyers filed a court motion to express worries about the chances of funds leaving the US, requesting the freezing of customer assets to avoid illegal transfers by CZ’s entities.

Coinbase confident they’ll defeat SEC

The regulator alleged that Coinbase has operated as an unlicensed broker and exchange, offering securities without authorization. Meanwhile, Coinbase chief Brian Armstrong reacted to the allegations, stating that they have followed SEC rules and contacted the regulators whenever possible.

Nonetheless, invezz.com news show Brian Armstrong is confident about defeating the SEC in court. It remains crucial to witness how these developments will unfold. Stay tuned for the latest crypto updates for upcoming news.

Robinhood reducing its asset index in compliance with SEC will likely dent crypto sentiment. That will trigger bearishness in the entire market while hitting the mentioned altcoins harder – Solana, Polygon, and Cardano. Nevertheless, the crypto community remained optimistic despite the regulator’s lawsuits.