- Bakkt, a regulated crypto trading platform, has decided to delist Solana, Cardano, and Polygon tokens due to regulatory uncertainty and lack of clarity.
- The delisting of these cryptocurrencies will greatly impact the future of digital asset trading for both retail and institutional investors.
Amid the recent regulatory crackdown by the U.S. Securities and Exchange Commission (SEC), crypto exchanges have started delisting tokens deemed as securities by the securities regulator. Bakkt, the New York-based regulated crypto trading platform has decided to delist three of the top ten altcoins – Solana, Cardano, and Polygon – amid uncertainty and lack of clarity.
The SEC named all these three cryptocurrencies as securities during its lawsuit filed against crypto exchanges Binance and Coinbase earlier this month. SEC Chairman Gary Gensler has consistently stated that most cryptocurrencies, excluding Bitcoin, are considered securities. This regulatory development has prompted Bakkt and other crypto platforms to review and reconsider the tokens they list.
Owned by Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange (NYSE), Bakkt initially launched as a custody service for institutional investors’ Bitcoin holdings. Over the period of time, the platform has expanded its services in order to include an app for retail investors to trade digital assets.
But later in March 2023, Bakkt discontinued its retail offering stating that it was no longer aligning with its B2B2C approach.
Delisting of Crypto Following the SEC Action
Bakkt’s General Counsel and Secretary, Marc D’Annunzio, stated that the decision to delist was motivated by the need for clearer guidelines on how to legally offer a wider variety of cryptocurrencies. As reported by Fortune reported that Bakkt intends to wait for additional guidance before expanding its range of available coins.
However, Bakkt is not the only platform to initiate these measures. Last week, the popular trading platform Robinhood also announced the delisting of these three cryptocurrencies. Amid the evolving regulatory landscape, the SEC’s actions have forced industry participants to reconsider their offerings.
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The CEO of Bakkt, Gavin Michael, recognizes the difficulties caused by the unclear regulations and emphasizes the need to know the rules and operate within them.
The removal of Solana, Polygon, and Cardano from Bakkt and other platforms doesn’t just affect the availability of these tokens but also highlights the importance of strong regulations in the cryptocurrency industry.
The choices made by Bakkt and other platforms will greatly impact how digital assets are traded and the choices offered to both individual and institutional investors in the future.
Another popular crypto trading platform eToro also initiated similar action last week. However, it chose to delist Algorand (ALGO), Decentraland (MANA), DASH, and Polygon (MATIC). It noted:
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eToro has a framework in place which reviews the crypto assets we offer in light of the rapidly evolving regulatory landscape. Due to recent developments, we will be making some changes to our crypto offering for US customers.
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