Bakkt has delisted Cardano, Polygon, and Solana in response to the US SEC’s designation of the assets as securities.
Bakkt Inc will delist Cardano (ADA), Solana (SOL), and Polygon (MATIC), three digital currencies designated as investment contracts by the United States Securities and Exchange Commission (SEC) last week.
Bakkt Adopts a Position
As reported by Fortune, the digital currency platform in Georgia, United States, made the decision to delist three digital currencies due to regulatory uncertainty. General Counsel Marc D’Annunzio told Fortune that the company would take action “until there is further clarity on how to compliantly offer a more extensive list of coins.”
Bakkt, in contrast to mainstream digital currency trading platforms, is known to support only a limited number of digital currencies, and the company delisted Algorand (ALGO) and Decentraland (MANA) a few months after the SEC filed a lawsuit against Bittrex.
Due to the increasing scope of industry crackdowns, Bakkt has chosen to err on caution and administer the small list of assets without controversy on its platform. Currently, only Bitcoin (BTC), Ethereum (ETH), Dogecoin (DOGE), Litecoin (LTC), USDC, and Shiba Inu (SHI) can be traded on Bakkt.
Rapidly Expanding Industry Trend
The SEC’s delisting of the designated digital currencies is rapidly becoming a significant trend, a situation that industry experts fear could reduce the liquidity of the tokens in question.
Robinhood was the first trading platform to announce the delisting of three digital currencies. Although, unlike Bakkt, it offered users the opportunity to trade the three affected tokens until the 27th of this month, its delisting cannot be considered less damaging.
Following Robinhood’s lead, eToro emphasized that its US consumers can only access the three digital currencies once regulatory clarity is achieved. The current difficulties of Cardano, Solana, and Polygon are related to XRP’s struggle since December 2020, when the SEC classified it as a security and accused Ripple Labs Inc of a $1.3 billion lawsuit.
As the delisting trend expands, industry analysts are eager to learn which platform will join it next.
