Consumer trading and funding app Robinhood is shifting to prohibit the holding and trading of sure main cryptocurrencies on its platform, barely every week after the U.S. Securities and Exchange Commission’s lawsuits in opposition to crypto exchanges Binance and Coinbase. The platform informed Congress earlier this week that it was analyzing its crypto choices following the lawsuits.
There are two straightforward views one can have within the wake of Robinhood’s decision to finish assist for tokens from the Polygon, Solana and Cardano blockchains: That the corporate is being too skittish, or that it’s making a calculated enterprise decision.
After reviewing Robinhood’s most up-to-date quarterly outcomes, we really feel that the decision is backed by some quantity of motive.
Robinhood isn’t new to being poked by the federal government. During the meme-stock mania, the corporate was dragged earlier than Congress to be questioned about its trading controls and its willingness to provide refined trading instruments to much less refined buyers. Given this much less thrilling asset trading market, the corporate is probably going loath to invite renewed curiosity from regulators and lawmakers.
But that is only one piece of the puzzle. Robinhood solely wants to do a easy risk-reward calculation: It’s seemingly that the corporate merely doesn’t derive sufficient income from shoppers trading these tokens to take the hassle to defend them.
Robinhood didn’t instantly reply to a request for remark.