- Robinhood has decided to re-evaluate its cryptocurrency offerings following the latest regulatory measures taken by the SEC against Binance and Coinbase.
- Robinhood currently offers trading services for 18 cryptocurrencies, which is a smaller offering compared to competitors like Coinbase.
- The recent regulatory reviews have prompted the brokerage to reconsider its approach and ensure compliance with securities laws.
Following the SEC’s lawsuit against Binance and Coinbase, Robinhood has decided to re-evaluate the cryptocurrencies it has listed.
Robinhood to Re-Evaluate Listed Coins
Popular brokerage Robinhood has decided to re-evaluate its cryptocurrency offerings following the latest regulatory measures taken by the US Securities and Exchange Commission (SEC) against Binance and Coinbase.
The company’s chief legal officer, Dan Gallagher, stated at a congressional hearing that Robinhood is reviewing the SEC’s analysis to determine any necessary action.
This development came after the SEC filed lawsuits against Binance and Coinbase, alleging that both platforms violated securities regulations.
Robinhood currently offers trading services for 18 cryptocurrencies, which is a smaller offering compared to competitors like Coinbase. However, some tokens offered on Robinhood, such as Solana, Cardano, and Polygon, have been classified as unregistered securities by the SEC.
This classification raises concerns and prompts Robinhood to evaluate its cryptocurrency offerings in compliance with regulatory requirements. Robinhood initially entered the cryptocurrency market in 2018 by offering Bitcoin and Ethereum trading and serving users in certain states.
Over time, the company expanded its cryptocurrency offerings and even listed meme tokens like Dogecoin and Shiba Inu. However, the recent regulatory reviews have prompted the brokerage to reconsider its approach and ensure compliance with securities laws.
The cryptocurrencies listed for trading by Robinhood are as follows: BTC, ETH, USDC, ADA, SOL, DOGE, MATIC, SHIB, AVAX, ETC, UNI, LTC, LINK, XLM, BCH, XTZ, AAVE, and COMP.
SEC Lawsuits Raise Concerns
The SEC has filed lawsuits against the world’s largest cryptocurrency exchange, Binance, and the largest US-based cryptocurrency exchange, Coinbase. Binance is accused of operating as an unregistered exchange and offering unregistered securities, while Coinbase faces similar charges related to its status as an exchange, broker, or clearing agency.
The commission has also noted that various tokens listed on these platforms have been classified as unregistered securities. The SEC’s legal actions against Binance and Coinbase are part of a broader regulatory crackdown on the cryptocurrency sector.
The commission has also targeted other leading players such as Kraken and Bittrex, as well as the crypto lending platform Nexo. These enforcement actions demonstrate the SEC’s commitment to ensuring compliance with securities laws in the cryptocurrency sector.
SEC Chairman Gary Gensler emphasized the importance of crypto companies complying with securities laws in an interview. Highlighting the industry’s need for compliance, he noted that there is a prevalent business model that does not comply and that it is a “catch me if you can” situation.
