Bakkt Removes Cardano, Polygon, and Solana after US SEC Labels Them as Securities
Bakkt Inc, a digital currency trading platform, is set to delist Cardano (ADA), Solana (SOL), and Polygon (MATIC) following the recent classification by the United States Securities and Exchange Commission (SEC) as investment contracts.
According to Fortune, the digital currency platform based in Georgia, United States, has made the decision to delist the three digital currencies due to regulatory uncertainties surrounding them. Bakkt’s General Counsel, Marc D’Annunzio, stated to Fortune that the company is taking this step “until there is further clarity on how to compliantly offer a more extensive list of coins.”
In contrast to mainstream digital currency trading platforms, Bakkt is recognized for its focused support on a select list of digital currencies. Earlier, the company delisted Algorand (ALGO) and Decentraland (MANA) following the SEC’s lawsuit against Bittrex.
Also Read: Bakkt removes Aave, Avalanche, Compound, Filecoin, MakerDAO, and Uniswap from its listings
Amidst the escalating industry crackdowns, Bakkt has taken a cautious approach to ensure effective management of its platform by avoiding any controversial assets. Currently, Bakkt solely facilitates the trading of Bitcoin (BTC), Ethereum (ETH), Dogecoin (DOGE), Litecoin (LTC), USDC, Shiba Inu (SHIB), and other selected cryptocurrencies.
The ongoing delisting of digital currencies by the SEC is emerging as a significant trend, raising concerns among industry experts about the potential reduction in liquidity for the affected tokens.
Robinhood became the first trading platform to declare its delisting of the three digital currencies. Unlike Bakkt, Robinhood provided its users with a window until the 27th of this month to continue trading the affected tokens. Nonetheless, the impact of Robinhood’s delisting should not be underestimated.
Following Robinhood’s lead, eToro has also joined the trend by announcing that its US customers will no longer have access to the three digital currencies until there is regulatory clarity surrounding them.
The ongoing challenges faced by Cardano, Solana, and Polygon mirror the difficulties experienced by XRP after being classified as a security in the SEC’s $1.3 billion lawsuit against Ripple Labs Inc in December 2020. As the delisting trend continues to expand, industry analysts eagerly speculate on which platform will be the next to join this trend.
Also Read: Governance Bug Temporarily Blocks Aave V2 Users from $120M on Polygon
Important: This article is intended solely for informational purposes. It should not be considered or relied upon as legal, tax, investment, financial, or any other form of advice.
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