‘Cloud of uncertainty’ prompts Robinhood to nix ADA, MATIC, SOL

The US brokerage firm on Friday said “no other coins are affected,” adding that “your crypto is still safe on Robinhood”

article-image

Robinhood co-founders Vlad Tenev and Baiju Bhatt | Lauren Sopourn for Blockworks

share

Robinhood is ending support for cardano (ADA), polygon (MATIC) and solana (SOL) — just days after all three were targeted by the SEC in both of the SEC’s suits against Binance and Coinbase. 

The assets won’t be tradable via Robinhood as of June 27, with the brokerage saying that customers with ADA, MATIC and SOL “still on Robinhood after the deadline will be automatically sold and credited” to their Robinhood account. 

“Earlier this week the SEC sued crypto companies Binance and Coinbase and alleged that a number of cryptocurrencies are unregistered securities. This includes Solana (SOL), Polygon (MATIC), and Cardano (ADA), which are currently supported on the Robinhood Crypto platform,” Robinhood said in an email to Blockworks. 

“This introduced a cloud of uncertainty around these assets and, as a result, our team has decided to end support for them,” Robinhood continued.

The SEC is alleging that ADA, MATIC and SOL are all securities in the lawsuits.

In arguing SOL is a security, the SEC wrote that the “marketed burning of SOL as part of the Solana network’s ‘deflationary mechanism’ has led investors to reasonably view their purchase of SOL as having the potential for profit to the extent there is a built-in mechanism to decrease the supply and therefore increase the price of SOL.”

For MATIC, the SEC claims that Polygon marketed that it burns MATIC tokens accumulated as fees, and also indicated that the supply of MATIC would decrease.

“Any ADA, MATIC, and SOL that’s still on Robinhood after the deadline will be automatically sold and credited to your Robinhood buying power,” Robinhood wrote in a blog post. 

“But while paying lip service to its desire to comply with applicable laws, Coinbase has for years made available for trading crypto assets that are investment contracts under the Howey test and well-established principles of the federal securities laws,” the SEC said in its lawsuit against Coinbase. 

“Defendants have unlawfully solicited US investors to buy, sell and trade crypto asset securities through unregistered trading platforms,” the SEC wrote in the filing against Binance.

Robinhood did not immediately respond to requests for comment.

Updated June 9, 2023 at 10:18 am ET: Added comments and context throughout.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Brooklyn, NY

SUN - MON, JUN. 22 - 23, 2025

Blockworks and Cracked Labs are teaming up for the third installment of the Permissionless Hackathon, happening June 22–23, 2025 in Brooklyn, NY. This is a 36-hour IRL builder sprint where developers, designers, and creatives ship real projects solving real problems across […]

recent research

Research Report Templates (19).png

Research

Suilend has grown into the top money market and liquid staking provider on Sui. STEAMM, Suilend’s Superfluid AMM, presents a compelling avenue for growing market share within Sui’s DEX landscape and revenue generation for the protocol. Suilend’s multi-product suite position it well for owning market share across key verticals. While current metrics across the Sui ecosystem are likely inflated due to Sui Foundation incentive programs, SEND trades at amongst the lowest multiples in the lend/borrow sector, suggesting that a bull case for continued growth in the ecosystem may be mispriced.

article-image

The stablecoin issuer now plans to offer 32 million Class A common stock shares at a price of up to $28 each

article-image

Let’s go whale watching, Bitcoin style: Investigating the mysterious “12ib7” wallet now worth $3.2 billion

article-image

Bitget’s L2 is undergoing a leadership change and will be helmed by Colin Goltra, formerly the blockchain’s chief growth officer

article-image

The funding was spread out across 61 rounds, a slight dip in both number of rounds and total funding in comparison to other months

article-image

Why is it controversial to say things are better than they used to be?

article-image

Wallchain could make influencer ROI more measurable for Solana businesses