Jamal Al-Farouq Following the U.S. Securities and Exchange Commission’s (SEC) legal pursuits against leading cryptocurrency exchanges, Robinhood is reassessing its cryptocurrency listings. The SEC alleges in its lawsuits against Binance and Coinbase that various tokens listed on these platforms are actually unregistered securities.
Robinhood Reexamines Crypto Portfolio in Response to U.S. Clampdown on Prominent Exchanges
The U.S.-based digital broker, Robinhood Markets, is scrutinizing its crypto offerings in response to the SEC’s stringent measures against Binance, the globe’s biggest crypto exchange, and Coinbase, the foremost digital asset exchange in the U.S.
The finance services firm is proactively analyzing the SEC’s viewpoint “to ascertain the appropriate next steps, if any,” as stated by the company’s Chief Legal Compliance and Corporate Affairs Officer, Dan Gallagher, as reported by Bloomberg.
Gallagher, an ex-SEC commissioner, made the announcement during his congressional testimony before the House Agriculture Committee in a meeting focused on digital assets. Robinhood’s app supports the trading of a variety of assets, including cryptocurrencies, stocks, and exchange-traded funds.
His statement follows the SEC’s recent legal proceedings against Binance and Coinbase this week. The regulator’s contention in these lawsuits is that several tokens listed by these top cryptocurrency exchanges are unregistered securities.
Robinhood allows its users to select from 18 different coins, offering a more restrained access to crypto assets compared to the hundreds of digital currencies offered by the exchanges. The SEC deems a few of these, such as solana, cardano, and polygon, as unregistered securities.
The SEC’s stern measures triggered significant withdrawal of major cryptocurrencies like bitcoin (BTC) and Ethereum (ETH), as well as stablecoins from Binance on Tuesday. The regulator is concurrently seeking court consent to freeze crypto assets associated with Binance’s U.S. subsidiary.
What are your thoughts on the potential delisting of a substantial number of coins by U.S.-operating crypto platforms? Share your views in the comments section below.
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Frequently Asked Questions (FAQs) about SEC’s Legal Action Against Crypto Exchanges
What is Robinhood doing in response to the SEC’s lawsuits against Binance and Coinbase?
Robinhood is actively reassessing its cryptocurrency listings in light of the U.S. Securities and Exchange Commission’s (SEC) legal pursuits against Binance and Coinbase. The SEC alleges that various tokens listed on these platforms are unregistered securities.
Who made the announcement regarding Robinhood’s actions?
Dan Gallagher, Robinhood’s Chief Legal Compliance and Corporate Affairs Officer, announced the move. Gallagher is a former SEC commissioner.
What is the SEC’s contention in its lawsuits against Binance and Coinbase?
The SEC argues in its lawsuits against Binance and Coinbase that a number of tokens listed by these leading cryptocurrency exchanges are actually unregistered securities.
How many cryptocurrencies does Robinhood offer, and how does this compare to other exchanges?
Robinhood offers 18 different coins for trading, a more limited selection compared to the hundreds of digital currencies listed by exchanges like Binance and Coinbase.
What impact has the SEC’s crackdown had on Binance so far?
The SEC’s stringent measures led to significant withdrawals of major cryptocurrencies like bitcoin (BTC) and Ethereum (ETH), as well as stablecoins from Binance. The regulator is also seeking court approval to freeze crypto assets tied to Binance’s U.S.-based subsidiary.
More about SEC’s Legal Action Against Crypto Exchanges
- SEC’s Official Website
- Robinhood’s Official Website
- Binance’s Official Website
- Coinbase’s Official Website
- News Source on Bloomberg
