Commerce to shoppers and Funding app Robinhood is about to limit the holding and buying and selling of sure main cryptocurrencies on its platform, only a week after the US Securities and Trade Fee filed lawsuits towards cryptocurrency exchanges Binance and Coinbase. The platform instructed Congress earlier this week that it was reviewing its cryptocurrency choices following the lawsuits.
Robinhood’s resolution to finish assist for tokens from the Polygon, Solana, and Cardano blockchains can have two easy views: that the corporate is being overly dishonest, or that it’s making a deliberate enterprise resolution.
After taking a look at Robinhood’s newest quarterly outcomes, we imagine the choice relies on a purpose.
Robinhood is not any stranger to being poked by the federal government. Throughout the meme-stock craze, the corporate was hauled earlier than Congress to be questioned about its buying and selling controls and its willingness to supply refined buying and selling devices to much less skilled buyers. Given this less-than-exciting asset buying and selling market, the corporate is unlikely to relish renewed curiosity from regulators and lawmakers.
However that is just one piece of the puzzle. Robinhood simply must do a easy risk-reward calculation: it is probably that the corporate merely is not getting sufficient income from customers buying and selling these tokens to maintain them.
Robinhood didn’t instantly reply to a request for remark.
