The United States Securities and Exchange Commission (SEC) has been cracking down on unregistered securities, and the crypto market is feeling the effects.
In its highly publicized case against Binance, the SEC classified tokens like Cardano as unregistered securities. This has led to mounting pressure on crypto exchanges operating within the United States, and some platforms have already begun to delist these tokens.
Robinhood Delists Cardano
On June 9, popular investing app Robinhood announced its intention to delist three tokens, namely Solana (SOL), Cardano (ADA), and Polygon (MATIC), effective June 27.
Robinhood will allow users to continue buying and selling these tokens until the end of June, after which any remaining tokens in users’ wallets will be sold at market value.
The platform cited mounting regulatory pressures and the uncertainty surrounding these assets due to the SEC’s case against major exchanges such as Binance and Coinbase.
Other Exchanges Consider Delisting
Robinhood is not the only crypto exchange considering delisting Cardano and other tokens classified as unregistered securities by the SEC.
Other exchanges, such as Kraken and Gemini, have said they are evaluating their options. This uncertainty is likely to weigh on the crypto market in the near term, as investors wait to see how the SEC’s crackdown plays out.
