The U.S. affiliate of Binance said it was halting dollar deposits, while trading platform Robinhood Markets (HOOD.O) said it was delisting some crypto tokens. The moves follow the U.S. securities regulator’s stepped-up crackdown on the crypto sector. The SEC’s decision to classify a handful of popular crypto assets as securities put pressure on exchanges and other businesses that allow traders to trade those coins.
The SEC filed lawsuits against crypto giants Binance and Coinbase this week, accusing them of violating U.S. law by operating unregistered securities exchanges and selling securities without proper registration. The SEC has also begun reviewing individual projects that it says are securities. The SEC’s determination of Tron (TRX) and several other popular crypto assets as securities put significant pressure on exchanges that offer to trade for those currencies. The SEC’s actions could force crypto businesses to decide whether to prioritize compliance or continue maximizing profits.
Robinhood said it would remove the crypto assets ADA, MATIC, and SOL from its platform on June 27. Anyone with those assets in their Robinhood accounts will have them automatically sold on the market. The move directly responds to the SEC’s claims that Binance and Coinbase operated unregistered securities exchanges. The Solana Foundation and Cardano development firm IOG have disputed the SEC’s characterization of their projects as securities.
Robinhood’s announcement came a day after Reuters reported that the U.S. Securities and Exchange Commission was preparing to fine the company for allegedly violating U.S. laws on bribery and corruption, money laundering, and economic sanctions. The report cited a source familiar with the matter.
Despite the SEC’s crackdown, Robinhood remains one of the most popular places to buy and sell crypto, with its online brokerage offering free stock trading in the United States. The Robinhood app offers more than 1,600 digital assets for trading, including Bitcoin and Ethereum. The Robinhood app is available for both iPhone and Android devices.
In other cryptocurrency news, Robinhood has decided to stop accepting fiat deposits from banks it does business within the United States. The move comes after a flurry of regulatory scrutiny from the SEC and the Federal Reserve. Shares of Silvergate Capital Corp, the parent company of Silvergate Bank, fell 22% on Thursday after Reuters’ report.
The SEC’s crackdown on crypto firms will likely continue as the agency works to ensure that all crypto assets are properly registered and backed by legitimate investors. The SEC has taken action against several exchanges, including Bittrex, Kraken, and Gemini. It has also accused FTX of illegally allowing founder Sam Bankman-Fried to siphon billions of dollars in customer funds through his brokerage firm Alameda Research. In 2022, FTX declared bankruptcy, leaving many of its customers with lost investments. The bankruptcy has raised concerns about the ties between U.S. banking and the crypto industry. The SEC has also been working to provide clarity for businesses on how it evaluates cryptocurrencies as securities.
