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Robinhood (HOOD), the popular trading platform, has announced that it will discontinue its support for Cardano (ADA), Polygon (MATIC), and Solana (SOL) starting from June 27th. This decision comes in the wake of recent lawsuits by the Securities and Exchange Commission (SEC) against Binance and Coinbase, where these three tokens were named as securities.

"Based on our latest review, we’ve decided to end support for Cardano (ADA), Polygon (MATIC), and Solana (SOL) on June 27th, 2023 at 6:59 PM ET," Robinhood said in a blog post. "No other coins are affected and your crypto is still safe on Robinhood," the post added.

Until the specified deadline, users have the ability to continue trading and transferring the three tokens seamlessly within the app. Robinhood has clarified that on June 27, when support ceases, any tokens remaining in a user's account will be promptly liquidated at their respective market values.

Robinhood stated that the decision was made as part of their routine assessment of cryptocurrencies. However, the aforementioned tokens were the sole ones listed on the trading platform and had been classified as securities in recent SEC lawsuits.

Following the removal from the list, the platform will provide trading services for a total of 15 diverse cryptocurrencies, which encompass prominent digital assets such as bitcoin (BTC), ether (ETH), dogecoin (DOGE), and avalanche (AVAX). It is worth noting that these particular cryptocurrencies were exempted from the SEC lawsuit as they were not classified as securities.

During a recent industry testimony in the U.S. House of Representatives, Robinhood expressed its efforts to become a registered special-purpose broker for digital assets. However, despite the willingness of the Securities and Exchange Commission (SEC) staff to assist, the trading platform faced challenges in obtaining guidance from the SEC to ensure compliance with cryptocurrency regulations.

“When Chair Gensler at the SEC in 2021 said, ‘Come in and register,’ we did,” said Robinhood Markets' chief compliance lawyer Dan Gallagher in his testimony. “We went through a 16-month process with the SEC staff trying to register a special purpose broker dealer. And then we were pretty summarily told in March that that process was over and we would not see any fruits of that effort,” he added.

Both Solana and Cardano have refuted the allegations of their tokens being classified as securities, whereas Polygon chose not to provide any comment to CoinDesk regarding the issue. Despite facing SEC lawsuits earlier this week, all three tokens remained relatively stable on Friday, showing minimal fluctuations.

Source Coindesk