https://blockworks.co/news/robinhood-nixes-ada-matic-sol
Robinhood is ending support for cardano (ADA), polygon (MATIC) and solana (SOL) — just days after all three were targeted by the SEC in both of the SEC’s suits against Binance and Coinbase.
The assets won’t be tradable via Robinhood as of June 27, with the brokerage saying that customers with ADA, MATIC and SOL “still on Robinhood after the deadline will be automatically sold and credited” to their Robinhood account.
The SEC is alleging that ADA, MATIC and SOL are all securities in the lawsuits.
In arguing SOL is a security, the SEC wrote that the “marketed burning of SOL as part of the Solana network’s ‘deflationary mechanism’ has led investors to reasonably view their purchase of SOL as having the potential for profit to the extent there is a built-in mechanism to decrease the supply and therefore increase the price of SOL.”
For MATIC, the SEC claims that Polygon marketed the MATIC token burns, which accumulate fees.
“Any ADA, MATIC, and SOL that’s still on Robinhood after the deadline will be automatically sold and credited to your Robinhood buying power,” Robinhood wrote in a blog post.
“But while paying lip service to its desire to comply with applicable laws, Coinbase has for years made available for trading crypto assets that are investment contracts under the Howey test and well-established principles of the federal securities laws,” the SEC said in its lawsuit against Coinbase.
“Defendants have unlawfully solicited US investors to buy, sell and trade crypto asset securities through unregistered trading platforms,” the SEC wrote in the filing against Binance.
