SEC Lawsuit Turmoil: Crypto.com Suspends Institutional Services, Robinhood Delists ADA, SOL, MATIC

Impacted by the lawsuits against Coinbase and Binance by the SEC, Crypto.com and the U.S. online brokerage platform Robinhood have introduced corresponding measures.

Crypto.com Suspends Institutional Services

Reports from Blockworks and Cointelegraph indicate that Crypto.com has issued a statement:

Due to limited demand from U.S. institutions for Crypto.com Exchange in the current market environment, we have recently made a business decision to suspend the provision of Crypto.com Exchange services to institutions in the U.S. effective from 11:59 PM EDT on June 21, 2023. Affected institutional users have been notified in advance to support a smooth transition.

Reports speculate that this move may be influenced by regulatory pressure on Binance and Coinbase in the U.S.

Robinhood Delists ADA, MATIC, SOL

The U.S. online brokerage platform Robinhood, following the legal actions against Binance and Coinbase, has reevaluated the cryptocurrencies available on its platform and announced that it will halt trading for Cardano ADA, Polygon MATIC, and Solana SOL starting at 7 PM ET on June 27.

These cryptocurrencies were mentioned in the lawsuits against Binance and Coinbase as securities.

In a statement on Twitter, Robinhood mentioned:

The litigation brings uncertainty to these assets, and our team has decided to pause support for these assets on the platform. For our users, all holders of Solana SOL, Polygon MATIC, and Cardano ADA will receive detailed instructions on how to sell or withdraw the tokens. We still believe in the future of cryptocurrencies and will continue to advocate for regulatory clarity in the U.S. to ensure users can confidently participate in the market.

Earlier this week, the SEC sued crypto companies Binance and Coinbase. The SEC has alleged that a number of cryptocurrencies trading on those platforms are unregistered securities, including three that are currently supported on Robinhood Crypto. (1/4)

— Robinhood (@RobinhoodApp) June 9, 2023