Robinhood is reviewing its crypto choices after the U.S. Securities and Exchange Commission (SEC) went after main digital belongings exchanges. In lawsuits in opposition to Binance and Coinbase, the regulator claims that a variety of tokens listed by the buying and selling platforms are unregistered securities.
Robinhood Reviews Cryptocurrency Offerings Amid U.S. Crackdown on Leading Exchanges
U.S.-based on-line dealer Robinhood Markets is having a look at its digital coin choices following the SEC’s determination to crack down on Binance, the world’s largest crypto change, and Coinbase, the main digital asset change within the United States.
The monetary providers firm is “actively reviewing” the regulator’s evaluation “to find out what, if any, actions to take,” the agency’s Chief Legal Compliance and Corporate Affairs Officer Dan Gallagher mentioned, quoted by Bloomberg.
Gallagher, who’s a former SEC commissioner, introduced the transfer when he testified in Congress earlier than the House Agriculture Committee in a gathering dedicated to digital belongings. Robinhood’s app facilitates trades of cryptocurrencies, alongside shares and exchange-traded funds.
His feedback come after the SEC took authorized motion in opposition to Binance and Coinbase this week with the securities regulator arguing within the lawsuits that a number of of the tokens listed by the 2 main cryptocurrency exchanges are in reality unregistered securities.
Robinhood customers can select between 18 totally different cash because the brokerage supplies a comparatively restricted entry to crypto belongings compared with the lots of of digital currencies listed by the exchanges. The SEC considers a few of them, solana, cardano and polygon, for instance, unregistered securities.
At the identical time, the SEC’s crackdown led to a major outflows of main cryptocurrencies like bitcoin (BTC) and ETH in addition to stablecoins from Binance on Tuesday. Meanwhile, the regulator additionally seeks courtroom approval to freeze crypto belongings linked to Binance’s U.S.-based subsidiary.
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