Bakkt, a New York-based cryptocurrency exchange, has joined the ranks of Robinhood and eToro by ending its support for Solana (SOL), Cardano (ADA), and Polygon (MATIC), according to a report by Fortune. The decision comes in the wake of the Securities and Exchange Commission (SEC) designating these cryptocurrencies, among others, as “securities.” Bakkt’s move is part of its proactive response to the evolving regulatory landscape, aiming to ensure compliance and await further clarity before offering a broader range of coins.
Delisting Cryptocurrencies Post Apex Crypto Acquisition
Bakkt recently completed its acquisition of Apex Crypto, a trading infrastructure provider, for $155 million. The deal allowed Bakkt to expand the selection of cryptocurrencies available to traders. However, due to the regulatory crackdown on the crypto industry, Bakkt decided to delist several tokens, including SOL, MATIC, and ADA, during the transition. This cautious approach reflects the company’s commitment to operating within regulatory boundaries until there is more guidance on compliantly offering a wider array of coins.
Additional Delistings and Regulatory Scrutiny
Apart from the recent delisting of SOL, ADA, and MATIC, Bakkt took further action following the SEC’s lawsuit against Bittrex. The exchange halted support for ALGO and MANA, just a day after the SEC deemed them securities. Bakkt’s decision to remove these tokens, as well as another 25 assets, was based on the most up-to-date regulatory guidance. The ever-growing list of tokens designated as securities by the SEC now stands at nearly 70, with ADA, SOL, and MATIC being the most significantly affected.
Delistings on Robinhood and eToro
It is worth noting that prior to Bakkt’s delisting, Robinhood and eToro had already made the decision to remove SOL, ADA, and MATIC from their platforms. Unlike Bakkt, these stock brokerages made independent choices rather than being compelled by regulatory pressure. Meanwhile, the SEC continues to crack down on crypto trading platforms, accusing them of listing unregistered securities. However, despite these allegations, many tokens designated as securities remain available for trading on various exchanges and platforms, allowing unrestricted access to US investors.
As the regulatory landscape surrounding cryptocurrencies evolves, Bakkt has followed in the footsteps of Robinhood and eToro by delisting Solana, Cardano, and Polygon from its platform. The decision stems from a proactive approach to ensure compliance and await further clarity on regulatory requirements. While the SEC’s actions have had a notable impact on SOL, ADA, and MATIC, other platforms and exchanges continue to offer these tokens. The industry awaits clearer guidelines from regulators as it navigates the complexities of cryptocurrency regulations.
