Good day everyone,
I hope you are all well are having an excellent day, welcome to CryptoGod-1’s blog on all things crypto. Following the recent ruling by the SEC, the popular exchange Robinhood has decided to remove a number of cryptocurrencies, including Cardano, Polygon, and Solana, in order to stay within the limits of regulations with those cryptocurrencies now considered securities.
SEC Lists Certain Crypto's as Securities
It has been a busy week for the SEC, with the Securities and Exchange Commission having sued both Binance. the worlds most popular exchange, and Coinbase, the largest US-based crypto exchange, on Monday and Tuesday. These lawsuits against the cryptocurrency exchanges are based on accusations of them committing crimes against the regulatory frameworks, while also acting as unregistered brokers.
According to the reports, CEO of Binance Changpeng Zhao (CZ) has also been sued over “blatant disregard” of securities laws, including operating an exchange illegally and defrauding investors. According to an accountant for the SEC, large amounts of money” were moved around in Binance accounts. The accountant noted:
“The transactions in many of the Binance or Zhao-owned company accounts held at Silvergate Bank and Signature Bank show large amounts of money flowing in and out of the accounts. The large incoming credits are followed by outgoing debits within days, with the result that the accounts maintain a relatively much lower balance at month’s beginning and end.”
In the SEC lawsuit against Binance, they noted that the following tokens were considered as securities:
- Cosmos (ATOM)
- Binance Coin (BNB)
- Binance USD (BUSD)
- COTI (COTI)
In the SEC lawsuit against Coinbase, they noted that the following tokens were considered as securities:
- Near (NEAR)
- Flow (FLOW)
- Internet Computer (ICP)
- Voyager Token (VGX)
- Dash (DASH)
- Nexo (NEXO)
- Chiliz (CHZ)
In both lawsuits, the following tokens traded on both Binance and Coinbase were considered as securities:
- Cardano (ADA)
- Solana (SOL)
- Polygon (MATIC)
- Filecoin (FIL)
- Sandbox (SAND)
- Decentraland (MANA)
- Algorand (ALGO)
- Axie Infinity (AXS)
It is very interesting to note how Ethereum (ETH) was excluded from the list in both lawsuits against the exchanges, with it not considered a security by the SEC.
Robinhood Exchange Moves Quickly
In response to the news of other exchanges being targeted, the US exchange Robinhood has decided to delist Cardano, Polygon and Solana. This came on the back of those coins being named as securities in the SEC's lawsuits against both Binance and Coinbase. To ensure they are not the not to recieve a filing against them, Robinhood have announced that those coins would no longer be supported after the 27th of June 2023, giving investors time to buy, sell and hold ADA, MATIC and SOL until the deadline. They were also quick to announce no other crypto held on Robinhood would be impacted.
Users will not be forced into selling their ADA, MATIC and SOL, and instead they can send them to another wallet or crypto firm. Any which remain on the exchange after the deadline has passed will be automatically sold and credited.
Have a great day.
Peace. CryptoGod-1.
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