Key takeaways:
- Robinhood, the fintech trading app, is currently assessing the inclusion of tokens that have been identified as unregistered securities.
- The platform has stated that it may delist tokens that are implicated in SEC lawsuits targeting major cryptocurrency exchanges, Binance and Coinbase.
Robinhood, a Fintech trading app, finds itself in the midst of a storm as it contemplates delisting tokens amidst an ongoing lawsuit with the U.S. Securities and Exchange Commission (SEC).
This move has sent shockwaves through the cryptocurrency community, raising concerns about regulatory compliance and the future of token trading on the platform.
The business said that it is thinking about removing several tokens from its list that have been included in the recent Securities and Exchange Commission (SEC) complaint against Binance and Coinbase.
These digital assets include SOL, ADA, and MATIC, among others.
The potential delisting of Cardano’s native token, ADA, from Robinhood could have a significant impact on its price, particularly as it is currently approaching a bearish technical pattern known as the ‘Rising Wedge.’
This pattern is characterised by two upward-sloping trend lines that converge, connecting higher highs and higher lows. In many cases, a breakdown below this pattern is accompanied by decreasing trading volumes.
Dan Gallagher, the head of legal at Robinhood, reportedly testified before the US Congress on Tuesday that the business is examining its cryptocurrency services and “actively reviewing” the SEC’s findings to decide “what, if any, actions to take.”
Although the brokerage Robinhood does allow users to buy cryptocurrencies, it is more renowned for its stock trading services and only offers 18 coins. These include digital currencies like Dogecoin, Solana, Ethereum, and Bitcoin.
Robinhood has not provided specific details about its course of action, but it is probable that the platform will consider delisting cryptocurrencies that the SEC has classified as unregistered securities to mitigate potential regulatory pressure.
In December of last year, the U.S. Securities and Exchange Commission (SEC) issued an investigative subpoena to Robinhood. The subpoena was focused on inquiries related to the listing of cryptocurrencies on the platform, as well as information regarding cryptocurrency custody and platform operations. This indicates that the SEC has been actively examining Robinhood’s cryptocurrency activities.
Given the SEC’s investigation and the overall regulatory landscape, it is reasonable to assume that Robinhood may take measures to ensure compliance with regulatory requirements and minimize potential legal risks. One such measure could be the delisting of cryptocurrencies that the SEC has categorized as unregistered securities.
