Robinhood Might Slim Crypto Choices in Response to SEC Actions

• Robinhood is reassessing its cryptocurrency choices following latest SEC actions.
• The SEC has recognized sure cryptocurrencies resembling Solana, Cardano, and Polygon listed on Robinhood as unregistered securities.
• This improvement coincides with the continued debate about cryptocurrency regulation, together with a latest congressional debate on a draft invoice.

Within the wake of latest actions by the U.S. Securities and Change Fee (SEC), Robinhood Markets Inc. is reassessing its cryptocurrency choices. Dan Gallagher, Robinhood’s authorized chief, and a former SEC commissioner, knowledgeable Congress of this assessment throughout a gathering centered on digital belongings.

In a bid to keep away from any conflicts with the SEC, Robinhood is reportedly considering delisting sure cryptocurrencies resembling Solana, Cardano, and Polygon. These are among the many 18 cryptocurrencies at the moment listed on Robinhood, in comparison with a whole lot on Coinbase. They’ve been recognized as unregistered securities by the SEC, elevating the potential for authorized implications​​.

The potential delisting of those standard cryptocurrencies may significantly affect Robinhood’s customers, because the platform solely helps a restricted choice of 18 cryptocurrencies, in comparison with a whole lot on Coinbase. This checklist at the moment contains Cardano, Solana, and Polygon, all of which had been added to Robinhood lower than a 12 months in the past as a part of an enlargement within the platform’s crypto choices.

If the lawsuit is profitable, and these cryptocurrencies are decided to be securities that haven’t been correctly registered, Robinhood could also be required to delist these cryptocurrencies to remain compliant with U.S. securities legal guidelines.

The most recent developments additionally reveal that Coinbase and the Commodity Futures Buying and selling Fee (CFTC) testified earlier than Congress on June 6 to debate a draft cryptocurrency invoice. The invoice goals to determine clear boundaries for when digital currencies ought to be handled as securities or commodities and once they shouldn’t be topic to regulation.

Paul Grewal, Chief Authorized Officer at Coinbase, has expressed help for the invoice, urging regulators to behave swiftly to make sure a transparent path for cryptocurrency innovation. CFTC Chairman Rostin Behnam additionally shared his views on the proposed laws, which was launched on June 2​​.

Moreover, the fee has additionally filed a lawsuit in opposition to Binance, one of many world’s largest cryptocurrency exchanges. The lawsuit alleges that Changpeng Zhao, the founding father of Binance, has management over the corporate’s U.S. operations, opposite to the corporate’s public claims.