Revolut Drops ADA, MATIC, SOL Tokens Amid US Regulations

Revolut, the digital banking service, has made the decision to discontinue support for Cardano’s ADA, Polygon’s MATIC, and Solana’s SOL tokens on its US platform in response to shifting regulatory dynamics surrounding cryptocurrencies in the United States.

Revolut is forced to delist ADA (and a few others) because of the SEC. They must see that #Cardano is growing and are probably not happy about this decision. As soon as they can, ADA will be re-listed. Indonesia considers $ADA a commodity. In the US, it will probably be the same. pic.twitter.com/CMXZpVM32W

— Cardano YODA (@JaromirTesar) July 3, 2023

Token Delist

The move comes after Revolut’s US crypto services provider, Bakkt, also chose to delist these tokens. Revolut promptly informed its customers that it would no longer facilitate buy and sell orders for these tokens due to regulatory changes. The discontinuation of support became effective immediately, with complete custodial support for these tokens set to cease by September 18. Revolut clarified that the delisted tokens would continue to be available on other markets. Bakkt justified its decision as a proactive measure until there is more clarity on how to compliantly offer a wider range of coins.

In a similar vein, Robinhood, the popular trading platform, also discontinued support for ADA, MATIC, and SOL following lawsuits by the US Securities and Exchange Commission (SEC) against Binance and Coinbase. The regulatory uncertainty surrounding these tokens prompted Robinhood’s decision, which officially took effect on June 27.

The SEC argues that ADA, MATIC, and SOL could be classified as securities. The agency points to the promotional burning of SOL and marketing strategies employed by Polygon, suggesting that they may have led investors to expect profits from their investments.

Furthermore, eToro also announced the discontinuation of support for MATIC, along with Dash, Algorand, and Decentraland, which were also identified in the SEC lawsuits. The discontinuation of support for these tokens will come into effect on July 12.

Revolut recently expressed its commitment to working collaboratively with global regulators to shape the future of the crypto industry via a tweet. In response to the SEC’s claims, Coinbase issued a comprehensive statement asserting that the agency cannot unilaterally assert control as it attempts to regulate digital assets. Coinbase suggested that regulatory decisions regarding the industry should be made by Congress.

As the regulatory landscape surrounding cryptocurrencies continues to evolve, market participants are navigating these changes and adjusting their offerings accordingly.