Cardano (ADA), Solana (SOL), and Polygon (MATIC) face potential delisting from the Robinhood trading platform amid recent legal actions from the U.S. Securities and Exchange Commission (SEC).
Robinhood said it could remove tokens implicated in the SEC lawsuit against the two flagship cryptocurrency trading platforms, Binance and Coinbase, Bloomberg reports.
If a cryptocurrency is determined to be a security and hasn't been registered with the SEC, it's illegal for U.S.-based exchanges like Robinhood to allow users to trade them. Therefore, if the SEC lawsuit proves successful, Robinhood may have to delist these cryptocurrencies to remain compliant with U.S. securities laws.
The SEC contends that a range of widely traded cryptocurrencies, including Cardano, Solana, and Polygon, are securities that have not been properly registered.
The potential delisting of Cardano comes less than a year after the cryptocurrency was added to the Robinhood platform. The online brokerage, listed on Nasdaq, added support for the ADA cryptocurrency in September 2022. This move was part of a broader expansion in Robinhood's crypto offerings that year. It initially started offering crypto in early 2018.