Bitrabo Editorial
New York-based digital assets platform Bakkt has decided to delist three prominent cryptocurrencies – Solana, Cardano, and Polygon. This move is due to regulatory uncertainty and a lack of clarity in the industry. The decision follows recent lawsuits filed by the United States Securities and Exchange Commission (SEC) against Coinbase and Binance, alleging the sale of unregistered securities, including Solana, Cardano, and Polygon.
The SEC’s legal actions have highlighted Solana, Cardano, and Polygon as securities for the first time. Although SEC Chairman Gary Gensler has consistently maintained that most cryptocurrencies, excluding Bitcoin, are considered securities, this regulatory development has prompted Bakkt and other crypto platforms to reassess their token offerings.
Bakkt, owned by Intercontinental Exchange (ICE), initially launched as a custody service for institutional investors’ Bitcoin holdings. Over time, it expanded its services to include an app for retail investors to trade cryptocurrencies. However, Bakkt discontinued its retail offerings in March to focus on its B2B2C approach.
Major Cryptocurrencies Removed From Bakkt
Bakkt’s general counsel and secretary, Marc D’Annunzio, explained that the decision to delist these cryptocurrencies was driven by the need for further clarity on compliantly offering a broader range of cryptocurrencies. The platform intends to wait for additional guidance before expanding its coin offerings.
This delisting decision from Bakkt comes shortly after trading app Robinhood also announced the discontinuation of support for Solana, Cardano, and Polygon. The regulatory actions by the SEC have prompted industry participants to reassess their offerings to navigate the evolving regulatory landscape.
Gavin Michael, CEO of Bakkt, acknowledges the challenges posed by the current regulatory uncertainty. He emphasizes the importance of understanding the boundaries and operating 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 highlights the need for robust and comprehensive regulations in the cryptocurrency industry.
The decisions made by Bakkt and other platforms will significantly shape the future of digital asset trading and the available options for retail and institutional investors.
Despite the delistings, Bakkt will continue to support eight other prominent cryptocurrencies, including Bitcoin, Ethereum, Dogecoin, Litecoin, USDC, and Shiba Inu.
The company remains committed to adhering to regulatory boundaries but emphasizes the urgent need for regulators to provide comprehensive guidelines and a clearer roadmap for operating in the crypto space.
Featured image from Yahoo Finance, chart from TradingView.com