Trading platform Robinhood is reportedly reviewing its cryptocurrency offerings following the SEC crackdown on Binance and Coinbase.
Robinhood Markets Inc. is reportedly reassessing the cryptocurrencies it offers on its platform after the US Securities and Exchange Commission (SEC) sued crypto exchanges Coinbase and Binance. On Tuesday, the company’s chief legal officer, Dan Gallagher, told Congress that it is “actively reviewing” the SEC’s analysis “to determine what, if any, action to take.”
A former SEC commissioner, Gallagher, testified before the House Agriculture Committee during a meeting on digital assets.
SEC Believes Several Popular Cryptocurrencies are Unregistered SecuritiesIn its lawsuit against Binance and its CEO Changpeng Zhao, the SEC alleged that popular cryptocurrencies such as Cardano (ADA), Polygon (MATIC), and Solana (SOL) are unregistered securities.
Robinhood currently offers its clients 18 different tokens to trade with compared to hundreds available on Coinbase’s platform, Bloomberg reports.
Some of the 18 tokens that Robinhood offers, however, the SEC have deemed to be unregistered securities. These tokens include Cardano, Solana, and Polygon.
The Lawsuits Against Binance and CoinbaseThe SEC ramped up its efforts to target unregistered securities and filed lawsuits against Binance, its CEO Changpeng Zhao, and crypto exchange Coinbase.
The agency accused Binance of mishandling customer funds and lying to investors and regulators about its operations. The SEC also alleges that the company’s CEO failed to restrict US customers from its platform and mislead investors about its market surveillance controls.
Less than a day after lodging a complaint against Binance, the agency sued Coinbase in a New York federal court.
In a press release, the SEC said Coinbase acted as an unregistered securities exchange, broker, and clearing agency and charged it for “the unregistered offer and sale of securities in connection with its staking-as-a-service program.”
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