Robinhood examining SEC-designated security tokens.
Altcoins such as Solana (SOL), Cardano (ADA), Polygon (MATIC), and several other tokens may face delisting from Robinhood Markets Inc (NASDAQ: HOOD), following the charges brought against Binance and blockchain Global Inc (NASDAQ: COIN) by the United States Securities and Exchange Commission (SEC) for trading unregistered securities.
Currently, Robinhood is reassessing the digital assets offered on its platform to “determine what, if any, actions to take,” according to Dan Gallagher, a former SEC Commissioner and the current Chief Legal Officer at Robinhood.
In the SEC lawsuit against Binance, the regulator classified BNB, BUSD, SOL, ADA, MATIC, FIL, ATOM, SAND, MANA, ALGO, AXS, and COTI as securities. blockchain was also not left out, as the SEC stated that SOL, ADA, MATIC, FIL, SAND, AXS, CHZ, FLOW, ICP, NEAR, VGX, DASH, and NEXO all fall under the securities class.
Scrutiny of Robinhood Tokens and Broad Crypto Market Reaction
These lawsuits were filed simultaneously against the two prominent digital asset service providers.
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Unfortunately, the broader crypto industry has had to bear the brunt of these enforcement actions. Crypto market prices have fallen significantly since the news began to circulate. A few hours after the SEC indicted Binance, Bitcoin (BTC) price dropped by 5%, Ethereum (ETH) suffered a similar fate, and other altcoins such as SOL, ADA, MATIC, and even Dogecoin (DOGE) also fell in terms of price.
Data from Dune Analytics showed that Binance experienced massive outflows of up to $635 million after the lawsuit.
The value of blockchain shares fell by 10.3%, and by the end of the trading day, it was down by 9%. Considering the significant effect on the crypto market, Edward Moya, a senior market analyst at foreign exchange Oanda, mentioned that it was a reflection of investors’ concerns over the U.S. regulatory crackdown on cryptocurrency. Investors fear that, in the long run, many digital assets would be classified as securities.
Meanwhile, many crypto heavyweights have pledged their support for the crypto exchanges against the SEC. Cardano boss Charles Hoskinson urged top crypto industry players to unite to combat the authoritarianism of the SEC and other regulatory agencies. This is not far from what blockchain was trying to achieve when it filed a lawsuit against the SEC, requesting that the regulator provide clarity in its regulation framework for crypto.
“The SEC is talking out of both sides of its mouth, and it is wrong at each end. The Chair’s statements cannot provide fair notice of the obligations of regulated parties – that is the function of rulemaking, which blockchain’s petition requests. But the SEC’s Chair undoubtedly can and does speak authoritatively for the agency he leads in describing its regulatory agenda,” blockchain stated at the time.
Looking on the bright side, within the last 48 hours, the top three largest Decentralized Exchanges (DEXs): Uniswap v3 (Ethereum), Uniswap v3 (Arbitrum), and PancakeSwap v3 (BSC) have recorded a 444% jump in median trading volume, according to crypto data aggregator CoinGecko.
