New York-based digital assets platform Bakkt has decided to delist three prominent cryptocurrencies—Solana, Cardano, and Polygon—due to regulatory uncertainty and a lack of clarity. This move follows recent lawsuits filed by the United States Securities and Exchange Commission (SEC) against leading crypto exchanges Coinbase and Binance, alleging the sale of unregistered securities, including Solana, Cardano, and Polygon.
The SEC’s legal actions marked the first time these three cryptocurrencies were specifically identified as securities. While SEC Chairman Gary Gensler has consistently asserted that most cryptocurrencies, except for Bitcoin, fall under the securities category, this regulatory development has prompted Bakkt and other crypto platforms to reassess their token listings.
Bakkt, owned by Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange (NYSE), 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, stating that it no longer aligned with its B2B2C approach.
Major Cryptocurrencies Removed From New York-based Digital Assets Platform Bakkt
Marc D’Annunzio, Bakkt’s general counsel and secretary, explained that the delisting decision was driven by the need for further clarity on how to compliantly offer a broader range of cryptocurrencies. Fortune reported on Bakkt’s intention to wait for additional guidance before expanding its coin offerings.
The platform’s decision to delist Solana, Cardano, and Polygon comes shortly after popular trading app Robinhood also announced the discontinuation of support for these three assets. The SEC’s regulatory actions have prompted various industry participants to reevaluate their offerings in response to the evolving regulatory landscape.
Gavin Michael, CEO of Bakkt, acknowledges the challenges presented by the current regulatory uncertainty, emphasizing 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, both by Bakkt and other trading platforms, not only impacts the liquidity of these tokens but also underscores the necessity for robust and comprehensive regulations within the cryptocurrency industry.
The decisions made by Bakkt and other platforms will significantly shape the future landscape of digital asset trading and the available options for retail and institutional investors.
Despite the delistings, the platform continues to provide 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 guidelines and a clearer roadmap for operating in the crypto space.
Featured image from Yahoo Finance, chart from TradingView.com