Robinhood App Will End Support for Three Cryptocurrency Tokens After June 27 (mashable.com) 19
"Just days after the U.S. Securities and Exchange Commission sued crypto exchanges Binance and Coinbase for selling unregistered securities, crypto companies are already dealing with the fallout," reports Mashable:
The popular stock trading app Robinhood announced on Friday that the company would be delisting all of the cryptocurrency tokens that trade on its platform that the SEC classified as unregistered securities. According to Robinhood, it will end support for the crypto tokens Cardano (ADA), Polygon (MATIC), and Solana (SOL) after June 27. Users can buy and sell these tokens until then, and can transfer these tokens to other crypto wallets as well. However, after that 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, the crypto exchange Crypto.com announced that it would be shutting down one of its services: its institutional exchange [which] provided services for institutional investors like pension funds, mutual funds, and university endowments.
"In a statement provided to the cryptocurrency media outlet Blockworks, Crypto.com claimed that the decision was made due to 'lack of demand due to the market landscape in the U.S.'"
Also on Friday, the crypto exchange Crypto.com announced that it would be shutting down one of its services: its institutional exchange [which] provided services for institutional investors like pension funds, mutual funds, and university endowments.
"In a statement provided to the cryptocurrency media outlet Blockworks, Crypto.com claimed that the decision was made due to 'lack of demand due to the market landscape in the U.S.'"
Selling customers' shares? (Score:4, Interesting)
Is Robinhood a broker or not?
any account holding Cardano, Polygon, or Solana in their Robinhood account will automatically sell
Pretty sure This is Illegal - selling customer property. It's called unauthorized trading, unless you have a margin account with the units as collateral for borrowed money or discretionary account where the broker manages your investment purchase choices.
Such selling would have tax consequences as well.
Ending support for an asset in customer accounts entails a broker delivering that property to the customer.
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Yep, no different than if you loaned me your car and I sold it on Craigslist, then gave you a fraction of what I got for it.
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That's a cute slogan, But it is not a legally accurate statement. These are just like a bank account.. your crypto in the bank is still your property legally. If you deposited or purchased assets that are placed in a custody account or with a broker - those assets are still your legal property; even if your broker is recorded as the name of record those shares or units are registered to.
it is at best a reminder that many exchanges are Unreliable and can disappear overnight; stealing cu
It's almost like (Score:2, Funny)
Gee, it's almost like crypto and NFTs are a just scams designed to take money from the hopeful and the gullible.
But that couldn't be it.
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I saw someone describe the crypto space as having "big divorced dad energy", as in it's never their own fault that crypto doesn't work. It's the economy, or the banks, or the government, or luddites, or the Fed or anything else that failed crypto.
Crypto's downfall was it became worth actual money and once that happened there was almost zero motivation to make it a functional product or device, it was just what could keep the money train pumping.
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What should the government be doing? Letting crypto be a free for all? They turned essentially a blind eye to crypto for years through the peaks and valleys and all the scams and even now they're not even really regulating it, they're just discussing regulating it and actually prosecuting the lawbreakers.
If the mere suggestion of possible regulations causes your ecosystem to implode it was on seriously shaky ground to begin with.
"we are operating as a fking unlicensed securities exchange in the USA bro" - B
What should the government be doing? (Score:1)
Half of the motivation why national governments are so keen to regulate it (and especially in the US case, just assume and act like they have jurisdiction over the whole global thing), is because they are terrified that humanity might organize at a global level, above their jurisdiction.
Second, the very first thing any responsible person in
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First of all, cryptocurrency and decentralized finance is a global, humanity-wide activity, not a national one.
No it isn't and that's not how the laws work in any country, currently, on the face of the earth. Crypto can't operate in the USA, with American customers, American banks, all under US jurisdiction and then say "You have no jurisdiction over us". Even other countries have laws dictating how USD is used in their nations, the US doesn't get to set those rules because they made the money.
because they are terrified that humanity might organize at a global level, above their jurisdiction.
Maybe, but you have to present evidence for that and as we are seeing right now, it sure seems like the US has at least so
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2) It looks like, since governments are so concerned about regulating currencies that get exchanged back into their own fiat currency, that what will have to happen for crypto-viability is for transactions for real things to be made using the (major) cryptocurrencies themselves. Things will need to get priced in milliether, for example.
At that point, the cryptocurrency and decentralized finance ecosystem will have no need for conventional banking services, a
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1. They may not all be US businesses but they operate out of somewhere, and if they do business in the US as a forgeign company they can come under US regulation. You can't just declare yourself free from it, if you don't like it don't do business in the US.
2. The only reason crypto gets any attention is based on it's value in those fiat currencies. That's why when people buy stuff in ETH or BTC it's translated down to USD or EUR. It's a chicken and the egg scenario for which crypto has not come up with
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Decentralized exchanges don't operate as companies:
Who controls decentralized exchanges?
Summary. A decentralized exchange (DEX) is a peer-to-peer (P2P) marketplace that connects cryptocurrency buyers and sellers. In contrast to centralized exchanges (CEXs), decentralized platforms are non-custodial, mean
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and even now they're not even really regulating it, they're just discussing regulating it and actually prosecuting the lawbreakers.
It takes the government a long time to start considering if and how to regulate a new technology; as it should. In the early years the government doesn't even understand what it is well - and its ramifications, And if it's even worth the effort. New technology can change so fast the regulations become pointless or worse cause an excessive hinderance to legitimate business.
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Sure, we should just let the crypto/NFT space be like the wild west, and if your mother or father or brother or sister gets screwed and loses all their money, you can hold their hand, look them right in the eye and say, "Tough shit, sucker."
I mean, who could have ever imagined that overvalued pretend money or non-existent "property" could ever involve any kind of financial shenanigans?
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The financial establishment and the governments they heavily influence if not control are freaking out because cryptocurrency has made this fact a little more explicit, and people in power and in possession of the old money are worried that people en masse might stop valuing the old stuff as much and shift to valuing the new stuff, which they don't control.
More precisely, a unit of cu
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tech is sufficiently shaken out and out of "beta".
When is that? Another 10 years? 20? Will they solve the transaction fee and timing issues without putting another obscure layer of protocols on top of protocols? (Lightning) that no one wants to bother with using or interfacing with? Will it be one of the dozens of other altcoins? How will the winner be chosen? Who controls the code? How do I pay for my groceries, my mortgage, my taxes? How is the value of crypto even derived without exchange rates to existing currencies?
The thing the crypto community lef
CryptoBros are crying (Score:1)
https://www.youtube.com/watch?... [youtube.com]
It's not an investment if it has no value except what someone else may buy it for tomorrow. That's a gamble.
It's not an investment if your "investment broker" can DIvest you of it at their whim, at their price, because the SEC said stuff but no litigation or rulemaking.
Ah those crying cryptobros silenced. Something terrible the force something something.