Robinhood, the well-known trading platform, has announced that it will no longer offer support for three specific cryptocurrencies starting June 27, 2023. The affected cryptocurrencies are Cardano (ADA), Polygon (MATIC), and Solana (SOL).

This decision comes shortly after the U.S. Securities and Exchange Commission (SEC) filed lawsuits against major cryptocurrency exchanges Binance and Coinbase. The lawsuits alleged that ADA, MATIC, and SOL were unregistered securities, highlighting potential compliance issues.

They shared, “Earlier this week the SEC sued crypto companies Binance and Coinbase and alleged that a number of cryptocurrencies are unregistered securities. This includes Solana (SOL), Polygon (MATIC), and Cardano (ADA), which are currently supported on the Robinhood Crypto platform.”

Robinhood added, “We regularly review the crypto we offer on Robinhood,” the firm shared in an update. Based on our latest review, we’ve decided to end support for Cardano (ADA), Polygon (MATIC), and Solana (SOL) on June 27th, 2023 at 6:59 PM ET.”

Prior to the delisting of Cardano, Polygon, Solana, users have the option to withdraw their assets if they prefer not to have them sold. However, it’s important to note that the ability to withdraw these crypto assets may not be available in all states.

“Any ADA, MATIC, and SOL still in your Robinhood Crypto account will be sold for market value, and the proceeds will be credited to your Robinhood buying power,” the company added.

The Solana Foundation addressed the claim that Solana (SOL) is a security on Thursday, asserting that SOL is, in fact, a community-driven project that depends on decentralized engagement from its users and developers. 

Dan Gallagher, Chief Legal Compliance Officer at Robinhood and a former SEC commissioner, had earlier said that they are “actively reviewing the SEC analysis to determine what, if any, actions to take in that regard.”

Robinhood, an American trading platform, has revealed its plans to stop supporting certain cryptocurrencies. Effective June 27, 2023, at 06:59 PM (ET), Robinhood will no longer offer services for Cardano (ADA), Solana (SOL), and Polygon (MATIC). The decision was made after a review of the platform’s cryptocurrency offerings. 

Following the U.S. Securities and Exchange Commission (SEC) labeling several cryptocurrencies as unregistered securities, Robinhood, the trading app, has informed its users that they will no longer be able to trade the above-mentioned tokens on its platform.

Attorney Bill Morgan, who often shares interesting insights about the ongoing XRP vs SEC lawsuit, took to his Twitter handle to answer a query raised by Paul Barron. 

Paul wrote on Twitter, “@RobinhoodApp  just ended support for @solana @0xPolygon @Cardano is @coinbase  next for these assets – where will Americans decide to go? 1. Self Custody 2. Sell Tokens 3. Move Off Shore.”

Replying to Paul, Bill said, “You ask if @Coinbase is next to end support for these cryptos. Coinbase only ceases trading of assets that contain the letters XRP.”

This decision comes shortly after the SEC filed a lawsuit against Binance and its CEO, Changpeng Zhao, making various allegations.

The lawsuit specifically mentions Cardano (ADA), Polygon (MATIC), Solana (SOL), Cosmos Hub (ATOM), Filecoin (FIL), Decentraland (MANA), Algorand (ALGO), The Sandbox (SAND), Coti (COTI), Axie Infinity (AXS), as well as the BUSD and BNB stablecoins, identifying them as securities.

However, Robinhood has limited its delisting action to SOL, ADA, and MATIC, reassuring its users that no other coins will be affected and will remain secure on the platform.

“Any ADA, MATIC, and SOL still in your Robinhood Crypto account will be sold for market value, and the proceeds will be credited to your Robinhood buying power,” the company said in its blog.

On-chain analytics firm Nansen highlighted remarkable growth in active addresses for the cryptocurrency market in May. Nansen says that May was an incredible month for growth in crypto. It occurred as active addresses hit a new all-time high in May, with many chains seeing double-digit growth in active addresses.

May was an incredible month for growth for crypto. They say we’re in a bear market, but the numbers say otherwise!

Solana: 9.5M (+86%)
BNB Chain: 12.4M (+14%)
Ethereum: 4.7M (-4%)
Optimism: 1M (+22%)
🆕 TRON: 12.1M

What were these addresses doing and how have things progressed? pic.twitter.com/4caCV5ms8l

— Nansen 🧭 (@nansen_ai) June 9, 2023

Nansen examines the growth in active addresses for major blockchains. Solana led the pack with an 86% increase in active addresses, coming in at 9.5 million. The Orca, Stepn and Raydium protocols contributed significantly to the increase in active addresses on the Solana blockchain.

BNB continues to be one of the most active chains in the ecosystem. Outside of Binance, PancakeSwap topped the chart as the most-used entity on BNB in May. Nansen reports that on May 31, TRON addresses accomplished nearly 11 million transactions in a single day, and in the last seven days, nearly 15 million USDT transfers were made.

Solana Foundation reacts to SEC allegations

In landmark lawsuits against Binance and Coinbase, two of the biggest cryptocurrency exchanges, the SEC named SOL and 12 other tokens as unregistered securities. The Solana Foundation has now responded to the SEC’s allegations, about three days later.

According to Fortune Magazine, a Solana spokesperson stated that “the Solana Foundation strongly believes that SOL is not a security.”

The largest exchange by trading volume, Binance, and its CEO, Changpeng Zhao, were the targets of the SEC’s action on Monday. The SEC said that Binance sold customers unregistered securities and flagrantly failed to adhere to U.S. securities legislation.

The next day, the SEC sued Coinbase, the largest exchange in the U.S., alleging in a similar manner that it had been acting as an unregistered broker, securities exchange and clearing agency.

Robinhood just announced that it would be delisting several cryptocurrency assets, including Solana.