Robinhood is reviewing its crypto offerings after the U.S. Securities and Exchange Commission (SEC) went after major digital assets exchanges. In lawsuits against Binance and Coinbase, the regulator claims that a number of tokens listed by the trading platforms are unregistered securities.
Robinhood Reviews Cryptocurrency Offerings Amid U.S. Crackdown on Leading Exchanges
U.S.-based online broker Robinhood Markets is taking a look at its digital coin offerings following the SEC’s decision to crack down on Binance, the world’s largest crypto exchange, and Coinbase, the leading digital asset exchange in the United States.
The financial services company is “actively reviewing” the regulator’s analysis “to determine what, if any, actions to take,” the firm’s Chief Legal Compliance and Corporate Affairs Officer Dan Gallagher said, quoted by Bloomberg.
Gallagher, who is a former SEC commissioner, announced the move when he testified in Congress before the House Agriculture Committee in a meeting devoted to digital assets. Robinhood’s app facilitates trades of cryptocurrencies, alongside stocks and exchange-traded funds.
His comments come after the SEC took legal action against Binance and Coinbase this week with the securities regulator arguing in the lawsuits that several of the tokens listed by the two major cryptocurrency exchanges are in fact unregistered securities.
Robinhood users can choose between 18 different coins as the brokerage provides a relatively limited access to crypto assets in comparison with the hundreds of digital currencies listed by the exchanges. The SEC considers some of them, solana, cardano and polygon, for example, unregistered securities.
At the same time, the SEC’s crackdown led to a significant outflows of major cryptocurrencies like bitcoin (BTC) and ETH as well as stablecoins from Binance on Tuesday. Meanwhile, the regulator also seeks court approval to freeze crypto assets linked to Binance’s U.S.-based subsidiary.
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