Trading giant Robinhood is delisting a handful of prominent crypto assets in response to the US Securities and Exchange Commission (SEC) suing Binance and Coinbase for allegedly violating securities laws.
According to a new report from Bloomberg, Robinhood Chief Legal Officer Dan Gallagher told members of Congress that the company is pulling smart contract platforms Solana (SOL), Cardano (ADA) and Polygon (MATIC) after SEC clamped down on the digital asset industry earlier this week.
Furthermore, Gallagher told the House Agriculture Committee that Robinhood will also review its crypto options in the future.
Gallagher, who is a former commissioner of the regulatory agency, says Robinhood is “actively reviewing” SEC complaints “to determine what action to take, if any.”
Earlier this week, the SEC filed lawsuits against Binance and Coinbase, the world’s two largest cryptocurrency exchanges, for allegedly violating securities laws.
Robinhood, a popular asset trading platform that primarily trades equities, also offered 18 crypto assets to clients before announcing it will remove SOL, ADA and MATIC.
Per the report, SEC filings indicate that all three digital assets qualify as securities, and therefore offering them would qualify as selling unregistered securities.
