Cardano was removed from Robinhood as pressure from regulators grew
The market is reacting to the SEC’s lawsuit against Binance and Coinbase. The complaint brought by the SEC is adding pressure on exchanges.
The SEC has created quite a quandary by classifying Cardano and similar tokens as unregistered securities in its high-profile action against Binance.
The SEC has put crypto exchanges in the United States in a difficult position by giving them an ultimatum: delist the token or face the repercussions.
Unfortunately, crypto exchanges like Robinhood have caved to regulatory pressure, although several platforms have demonstrated unity by rejecting the regulator’s shocking claims.
As of June 27th, the famous investment programme Robinhood will no longer support the cryptocurrencies Solana (SOL), Cardano (ADA), and Polygon (MATIC), the company stated on Friday, June 9th. The tokens will be available for purchase and sale on the platform until the end of June, after which time any unspent tokens in user wallets “will be sold for market value.”
Because of the SEC’s action against Binance and Coinbase, Robinhood highlighted increasing regulatory constraints and uncertainties over digital assets. The agency said that these tokens were unregistered securities in their lawsuit.
The Cardano price dropped from $0.324 to $0.304 (a decrease of 6%) after hearing that Robinhood will no longer support the cryptocurrency. This drop caused Cardano’s market value to drop from $11.3 billion to $10.5 billion. Despite the Cardano Foundation and IOHK denying the regulator’s findings, the asset has had trouble getting off the ground.
At the time of writing, Cardano had the poorest performance among the top 10 cryptocurrency tokens, losing 21% compared to the 3% rise of Bitcoin and Ethereum. Solana and Polygon have seen 14% and 18% significant price reductions, respectively.