Trading giant Robinhood is reportedly delisting a handful of high-profile crypto assets in response to the U.S. Securities and Exchange Commission’s (SEC) lawsuit against Binance and Coinbase for allegedly violating securities laws.
According to a new report by Bloomberg, Robinhood chief legal officer Dan Gallagher told members of Congress that the company is delisting smart contract platforms Solana (SOL), Cardano (ADA) and Polygon (MATIC) after the SEC cracked down earlier this year the digital asset industry had tackled this week.
In addition, Gallagher told the House Agriculture Committee that Robinhood will also review its crypto options in the future.
Gallagher, who is herself a former commissioner of the regulatory agency, says Robinhood is “actively reviewing” the SEC’s complaints to determine what actions, if any, should be taken.
Earlier this week, the SEC filed lawsuits against both Binance and Coinbase, the two largest crypto exchange platforms in the world, alleging violations of securities laws.
Robinhood, a popular asset trading platform that deals primarily with stocks, also offered 18 crypto assets to clients before announcing that it would delist SOL, ADA, and MATIC.
According to the report, the SEC’s lawsuits indicate that the three digital assets qualify as securities and that offering them qualifies as selling unregistered securities.
News of the delist sent the trio’s assets down. SOL is trading at $18.62 at time of writing, down fractionally over the last 24 hours, while ADA and MATIC are moving $0.311 and $0.762 respectively, down 5.2% and 2% on the day.
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