Robinhood Removes 3 Crypto Tokens Following Regulatory Crackdown

Annie Massa, Bloomberg News

The logo for Robinhood is displayed on a smartphone in an arranged photograph taken in the Brooklyn borough of New York, U.S., on Monday, Oct. 12, 2020. Even though the firm said this year that it has more than doubled its customer-service team, clients complain they're struggling to get quick help when their funds are disappearing. Photographer: Gabby Jones/Bloomberg , Bloomberg

(Bloomberg) -- Robinhood Markets Inc. will remove three tokens from its crypto trading platform, after a high-profile regulatory crackdown on some of the industry’s biggest exchanges.

Users will no longer be able to trade Solana, Cardano or Polygon on Robinhood, according to an announcement Friday. The change will go into effect June 27. Prices of all three of the tokens dropped more than 6%.

The move comes just days after a top US financial watchdog sued two of the largest crypto exchanges, alleging they offered unregistered securities, among other infractions. When the Securities and Exchange Commission sued Binance Holdings Ltd. and Coinbase Global Inc. earlier this week, it characterized Solana, Cardano and Polygon as unregistered securities, along with several other tokens the exchanges offered.

Dan Gallagher, Robinhood’s legal chief, said after the lawsuits that Robinhood was reviewing its own offerings.

Solana fell 7.5% to $17.60 as of 3:30 p.m. in New York, while Cardano slumped 7.3% to around 30 cents and Polygon eased 6.2% to about 73 cents.

Read more: Robinhood Reviews Crypto Offerings After Regulatory Crackdown

(Updates to include token prices.)