- The SEC’s case against Binance and Coinbase is impacting the market.
- Pressure on exchanges is rising after the SEC’s case.
- The SEC is now providing exchanges with a tough choice.
The United States Securities and Exchange Commission’s (SEC) recent crypto crackdown is taking its toll on the market. The regulator has stirred quite the conundrum by labeling Cardano and other emerging tokens as unregistered securities in its high-profile case against Binance.
Crypto exchanges operating in the country now find themselves in a challenging position, facing rising pressure from the SEC, which has presented them with an ultimatum: delist the token or face the consequences.
While some platforms have shown solidarity by opposing the regulator’s scathing allegations, crypto exchanges like Robinhood have unfortunately succumbed to the pressure.
On Friday, June 9, investing app Robinhood announced that it would delist Solana (SOL), Cardano (ADA), and Polygon (MATIC) starting June 27. The platform will allow users to buy and sell these tokens until the end of June, after which any remaining tokens in users’ wallets “will be sold for market value.”
Robinhood cited rising regulatory pressures and uncertainty surrounding these assets due to the SEC’s case against Binance and Coinbase. In its complaint, the regulator classified these tokens as unregistered securities.
Following Robinhood’s delisting announcement, Cardano experienced a 6% price drop, falling from $0.324 to $0.304. This decline brought Cardano’s market cap down to $10.5 billion from $11.3 billion. The asset has been struggling to find its footing, despite Cardano Foundation and IOHK refuting all claims made by the regulator.
Cardano is currently the worst performer of the top ten cryptocurrency tokens at press time, experiencing a 21% loss compared to Bitcoin and Ethereum’s 3% gain. Solana and Polygon have registered a 14% and 18% price drop, respectively.
On the Flipside
- Following the SEC’s crackdown, Robinhood claims the regulator dismissed their attempts to register as a crypto broker.
- SEC Chair Gary Gensler has countered Robinhood claims. He insisted that crypto-related companies, including Robinhood, know how to register and should comply with existing regulations.
- Cardano Founder Charles Hoskinson believes the SEC’s action against Binance is motivated by a hidden agenda.
- The SEC’s case against Binance and Coinbase sparked a wave of liquidations throughout the market, amounting to $104 million.
Why This Matters
The SEC’s allegations could have a snowball effect on the crypto market in the US. Many exchanges could follow in Robinhood’s footsteps, exerting copious sell pressure on tokens at the risk of facing the hammer.
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