Concerns regarding regulatory clarity and conformance plague Cardano (ADA), Solana (SOL), and Polygon (MATIC) in the United States.
After The United States Securities and Exchange Commission (SEC) filed a lawsuit against Binance, the SEC classified prominent cryptocurrencies as securities, including Cardano (ADA). However, the CEO of the Foundation disagrees with this classification and stresses the need for regulatory clarity within the industry.
Position of Cardano Foundation;ADA Security Classification
Frederik Gregaard, chief executive officer of the Foundation, disagrees with the SEC’s recent classification of ADA as a security under US law. The Cardano Foundation works with regulators and policymakers to establish legal clarity and certainty.
SEC Chair Gary Gensler has consistently maintained that most crypto assets are securities, except for Bitcoin (BTC).Â
These assets are reportedly investment contracts that must be registered with the agency. The SEC accuses Ripple, a blockchain company, of unlawfully issuing and selling the XRP token, which the SEC considers to be a security, not a commodity.
US SEC Litigation and Possible Delisting of Robinhood
The SEC has recently filed lawsuits against prominent cryptocurrency exchanges, such as Binance and Coinbase, alleging that they offered digital assets such as Cardano, Solana, Polygon, and Binance Coin without proper registration as securities. Therefore, prominent cryptocurrencies such as Cardano (ADA), Solana (SOL), and Polygon (MATIC) may be delisted from the Robinhood trading platform.
Robinhood has indicated that it may remove tokens entangled in the SEC lawsuit against Binance and Coinbase. Suppose the SEC has not registered a cryptocurrency determined to be a security. In this case, US-based exchanges such as Robinhood are prohibited by law from facilitating the trading of these tokens. To comply with US securities regulations, Robinhood may be required to delist these cryptocurrencies.
The Development of Cardano on Robinhood and Other Crypto Exchanges
The Nasdaq-listed online brokerage Robinhood added support for the blockchain-based ADA cryptocurrency in September 2022. This expansion of crypto offerings was part of Robinhood’s broader strategy to increase its presence in the cryptocurrency space following the launch of cryptocurrency trading on its platform in early 2018.
Robinhood is considering delisting cryptocurrencies that the SEC considers to be unregistered securities, such as Solana, Cardano, and Polygon, as was previously reported regarding the possibility of Cardano being delisted.
In the midst of the crypto industry’s regulatory difficulties, obtaining clarity and certainty in regulations remains vital. To strike a balance between innovation and compliance, industry participants and regulatory bodies must engage in ongoing dialogue. Currently, Cardano is trading at $0.3323, a decrease of 5.47% over the past 24 hours.
