New York-based digital asset platform Bakkt decided to cross out Three cryptocurrencies — Solana, Cardano, and Polygon — stand out due to regulatory uncertainty and lack of clarity. The move follows recent lawsuits filed by the US Securities and Exchange Commission (SEC) against leading cryptocurrency exchanges Coinbase and Binance, alleging the sale of unregistered securities, including Solana, Cardano, and Polygon.
The legal action by the SEC marked the first time these three cryptocurrencies were specifically identified as securities. While SEC Chairman Gary Gensler has consistently maintained that most cryptocurrencies, with the exception of Bitcoin, fall under the category of securities, this regulatory development has prompted Bakkt and other crypto platforms to reassess their token listings.
Bakkt, which is owned by Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange (NYSE), was initially launched as a custody service for Bitcoin holdings for institutional investors.
Over time, it has expanded its services to include an app for individual investors to trade cryptocurrencies. However, Bakkt discontinued its retail offering in March, stating that it was no longer compatible with its B2B2C approach.
Major cryptocurrencies have been removed from New York-based digital asset platform Bakkt
Mark D’Annunzio, general counsel and general secretary of Bakkt, explained that the delisting decision was motivated by the need for more clarity on how to compliantly offer a wide range of cryptocurrencies. Fortune has reported that Bakkt intends to wait for additional guidance before expanding coin offerings.
The platform’s decision to delist Solana, Cardano, and Polygon comes shortly after popular trading app Robinhood also announced it would stop supporting these three assets. The SEC’s regulatory actions have prompted many industry participants to reassess their offerings in response to the evolving regulatory landscape.
Gavin Michael, CEO of Bakkt, acknowledges the challenges posed by the current regulatory uncertainty, and stresses the importance of not only knowing where the boundaries lie but also understanding how to operate within them.
MATIC price declines to $0.6 following multiple delisting | Source: MATICUSD on TradingView.com
The delisting of Solana, Polygon, and Cardano, by Bakkt and other trading platforms, not only affects the liquidity of these tokens, but also underscores the need for strong and comprehensive regulations in the cryptocurrency industry.
The decisions made by Bakkt and other platforms will significantly shape the future landscape of digital asset trading and the choices available to retail and institutional investors.
Despite the deletion, the platform continues to offer support for eight other prominent cryptocurrencies, including Bitcoin, Ethereum, Dogecoin, Litecoin, USDC, and Shiba Inu.
The company says it remains committed to adhering to regulatory boundaries, but stresses the urgent need for regulators to provide comprehensive guidance and a clearer roadmap for action in the crypto space.
Featured image from Yahoo Finance, chart from TradingView.com