Robinhood Removes 3 Crypto Tokens, Binance Suspends US Dollar Deposits and Withdrawals

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Just days after the U.S. Securities and Exchange Commission (SEC) sued crypto exchanges Binance and Coinbase for selling unregistered securities, crypto companies are already dealing with the fallout.

Binance, which was sued by the SEC on Monday, announced late Thursday that the crypto exchange would “suspend” US dollar deposits. US dollar withdrawals will also be suspended “as of” June 13.

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“We encourage customers to take appropriate action with their USD,” Binance said in its statement. Basically, if you have US dollars in your Binance account, transfer your money elsewhere as soon as possible because your holdings are frozen.

Binance criticized the SEC for “creating challenges for the banks” that Binance partners with, leading these banking partners to “suspend fiat withdrawal channels.” While the SEC sued Binance and Coinbase this week for selling unregistered securities, the regulatory agency also went further with Binance, alleging the crypto exchange participated in “market manipulation and fraud.” .

After Binance’s announcement, dominoes continued to fall.

Popular stock trading app Robinhood announced on Friday that the company will delist all cryptocurrency tokens trading on its platform that the SEC has classified as unregistered securities. According to Robinhood, it will end support for Cardano (ADA), Polygon (MATIC), and Solana (SOL) crypto tokens after June 27.

Users can buy and sell these tokens until then, and can also transfer these tokens to other crypto wallets. However, after this date, any account holding Cardano, Polygon or Solana in their Robinhood account will automatically sell the tokens and be credited with the funds.

Also on Friday, crypto exchange Crypto.com(opens in a new tab) announced that it would shut down one of its services: its institutional exchange. In a statement provided to cryptocurrency outlet Blockworks, Crypto.com claimed (opens in a new tab) that the decision was made due to “lack of demand due to the market landscape in the United States.”

At this time, Crypto.com (opens in a new tab) does not anticipate any changes to its retail exchange and will continue to operate in the United States. The company’s now-closed institutional exchange provided services to institutional investors such as pension funds, mutual funds and university endowments — all institutions that were likely crypto-disabled due to the decline. unbridled market over the past 12 months.

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