The financial tech company Revolut joined eToro and Robinhood in delisting three tokens that the Security and Exchange Commission recently identified as securities. The London-headquartered platform indicated that the security label plunged dozens of tokens into regulatory uncertainty.
Tokens Classification as Security Pushing Revolut to Delist
The inclusion of Solana (SOL), Cardano (ADA), and Polygon (MATIC) in the security category featured in the submissions by SEC when filing charges against Binance and Coinbase last month. The move is compelling Revolut to delist as part of its strict compliance with the decisions adopted by the US regulatory agencies.
The platform, steered by Nikolay Storonsky as chief executive and Vlad Yatsenko leading the tech development, will delist the three tokens carrying the security label by September 18. The platform informed all users holding the three tokens to sell them before the deadline.
Revolut plans to dispose of the entire units of the three tokens that would remain unsold at the prevailing exchange value. The platform that operates as the extension of the British neobank founded assured users of safely depositing the proceeds into respective holders’ accounts.
Revolut clarified that users would no longer access the tokens. It implies that users will not purchase, dispose or hold them on the platform’s accounts.
Changing US Regulations Compels Revolut to Delist Tokens
Revolut spokesperson indicated that the delisting decision arises from the changing regulations in the US crypto industry. Although noncommittal to identifying SEC’s lawsuits initiated in early June against Binance and Coinbase, the delisting decision is extrapolated from the events.
SOL, ADA, and MATIC classification in the security category plunged the three tokens into decline. In particular, the tokens are struggling to regain the pre-lawsuit levels. A review of their performance using CoinGecko data shows their combined market capitalization exceeds $27 billion.
The struggle exhibited by the tokens to shake off the security tag shows that with the lawsuit still in the preliminary stages, its ripple effect is already scaring platforms. It explains the platform’s decision to delist the tokens citing the need to avoid confrontation with the Gary Gensler-led SEC.
Is Revolut Replicating Robinhood and eToro Decision?
Revolut replicates the decision Robinhood announced three days after the SEC’s enforcement actions against the leading global crypto exchange platforms. Robinhood issued a short deadline lapsing June 27 when it would cease supporting Solana, Cardano, and Polygon. eToro would follow suit with a similar decision.
The financial trading platform informed the US customers would halt supporting the purchase of MATIC alongside altcoins targeted by the securities agency. Nonetheless, it assured the customers they would sell the altcoins.
Revolut restated that it will provide access to the tokens via its registered services firm Bakkt. Also, the service provider informed the users of its decision to delist the tokens on June 16, citing the absence of regulatory clarity.
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