Robinhood exchange confirmed that it will follow new measures, on behalf of the latest lawsuit actions against two American crypto exchanges.
On 7 June 2023, Bloomberg reported that the Robinhood platform will delist huge numbers of crypto assets, as it comes to know that a dozen crypto assets trading on the Robinhood platform are security crypto tokens under the purview of the United States Securities and Exchange Commission (SEC).
In the present time, Robinhood provides crypto trading of nearly 18 crypto tokens and the latest delisting process will terminate trading for 10 crypto assets, including Cardano (ADA), Polygon (Matic), and Solana (Sol).
SEC vs Coinbase & BinanceUS
In the last two days, the US SEC sued Binance, BinanceUS, and Coinbase Exchange. In the imposed charges, the SEC body claimed that both of these two crypto exchanges violated Securities law, as they provided trading of SOL, ADA, MATIC, FIL, SAND, AXS, CHZ, FLOW, ICP, NEAR, VGX, DASH, and NEXO.
These mentioned crypto assets are security crypto tokens under the purview of the SEC agency, so trading these crypto assets on these crypto platforms was a violation of Federal securities law.
Except for CHZ, VGX, and Dash, all the mentioned crypto assets are trading on the Robinhood platform, and the majority of the assets were listed by Robinhood in 2022.
Now it will be interesting to see whether all the other US based crypto firms will delist all these mentioned crypto tokens from their platform or they will wait for SEC’s enforcement action.
SEC vs Crypto staking
Over the last 5 months, the SEC body initiated Wells notice & enforcement actions against several crypto firms, and in all those enforced regulatory steps, the SEC body targeted crypto firms over crypto staking services.
In particular, Kraken crypto exchange settled its case with the SEC over crypto staking services. Kraken paid $30 million as a fine & also suspended crypto staking services for the American customers.