Shopper buying and selling and funding app Robinhood is moving to restrict the holding and buying and selling of sure main cryptocurrencies on its platform, barely every week after the U.S. Securities and Trade Fee’s lawsuits in opposition to crypto exchanges Binance and Coinbase. The platform advised Congress earlier this week that it was analyzing its crypto choices following the lawsuits.
There are two simple views one can have within the wake of Robinhood’s determination to finish help for tokens from the Polygon, Solana and Cardano blockchains: That the corporate is being too skittish, or that it’s making a calculated enterprise determination.
After reviewing Robinhood’s most up-to-date quarterly outcomes, we really feel that the choice is backed by some quantity of purpose.
Robinhood isn’t new to being poked by the federal government. In the course of the meme-stock mania, the corporate was dragged before Congress to be questioned about its buying and selling controls and its willingness to supply refined buying and selling instruments to much less refined buyers. Given this much less thrilling asset buying and selling market, the corporate is probably going loath to ask renewed curiosity from regulators and lawmakers.
However that is only one piece of the puzzle. Robinhood solely must do a easy risk-reward calculation: It’s probably that the corporate merely doesn’t derive sufficient income from shoppers buying and selling these tokens to take the trouble to defend them.
Robinhood didn’t instantly reply to a request for remark.