It’s a sad day for Cardano (ADA-USD) crypto fans. Indeed, this afternoon, popular stock and crypto trading platform, Robinhood (NASDAQ:HOOD), announced it would cease trading of ADA, alongside Polygon (MATIC-USD) and Solana (SOL-USD), as of June 27.
This isn’t good news for Cardano. Indeed, cryptocurrencies tend to increase in value ahead of a Robinhood listing because Robinhood is one of the largest exchanges for cryptos, especially in the U.S. Conversely, Cardano’s removal may prove a bearish catalyst for the token.
On June 27, any holdings of ADA, MATIC, and SOL still in any Robinhood Crypto accounts will be automatically sold for market value and credited to users’ Robinhood buying power. Until then, users have the option of transferring their holdings to other wallets.
ADA Crypto Slides on Robinhood Delisting
As you might imagine, today’s news hasn’t bode well for the value of ADA. As it stands, the crypto is down 7% in the past 24 hours, with most of its losses coming in just the past few hours. Unfortunately, this is the tip of the iceberg for Cardano lately. ADA is down more than 20% in the past seven days as part of its 52% year-to-date losses.
It seems Cardano and Co’s removal from Robinhood is due to a pending lawsuit against certain crypto exchanges. Indeed, ADA, MATIC, and SOL were each listed by the Securities and Exchanges Commission (SEC) in a lawsuit against the Binance and Coinbase crypto exchanges. The SEC has claimed that the tokens amount to securities and thus lack certain regulations. Although, at this point, both Solana and Cardano have rejected the notion.
“When Chair Gensler at the SEC in 2021 said, ‘Come in and register,’ we did,” said Dan Gallagher, Robinhood Markets’ Chief Compliance Lawyer, in his recent testimony before the House of Representatives. “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,”
It’s unclear what the long-term ramifications of the SEC’s probe will amount to.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.