- Amidst regulatory ambiguities, Bakkt withdraws Solana, Cardano, and Polygon from its platform.
- This delisting occurs in the wake of lawsuits by the SEC against Coinbase and Binance.
New York’s esteemed digital asset platform, Bakkt, has recently delisted three high-profile cryptocurrencies – Solana, Cardano, and Polygon – in response to the current regulatory ambiguity. The move is a reaction to lawsuits filed by the United States Securities and Exchange Commission (SEC) against prominent crypto exchanges, Coinbase and Binance, for allegedly vending unregistered securities, including Solana, Cardano, and Polygon.
The legal proceedings initiated by the SEC are the first to explicitly classify these three cryptocurrencies as securities. The SEC Chairman, Gary Gensler, has maintained the view that the majority of cryptocurrencies, with the exception of Bitcoin, fall under the classification of securities. Bakkt, among other crypto platforms, have reconsidered their token listings in the wake of this regulatory evolution.
Bakkt, a subsidiary of Intercontinental Exchange (ICE) – the parent company of the New York Stock Exchange (NYSE), debuted as a custody service for Bitcoin holdings of institutional investors. Gradually, it broadened its services to feature an app for retail investors to trade cryptocurrencies. However, in line with its B2B2C approach, Bakkt discontinued its retail offerings in March.
Marc D’Annunzio, Bakkt’s General Counsel and Secretary, stated that the delisting decision was impelled by the demand for more clarity on offering a wider spectrum of cryptocurrencies in a compliant manner. Bakkt expressed its intention to hold off expanding its coin offerings until additional guidance is provided.
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This decision to remove Solana, Cardano, and Polygon from Bakkt’s platform closely follows a similar announcement from Robinhood, the popular trading app, to discontinue support for these assets. These regulatory actions taken by the SEC have caused various industry players to reevaluate their offerings in response to the changing regulatory climate.
Gavin Michael, CEO of Bakkt, recognizes the predicaments posed by the prevailing regulatory uncertainties, underlining the importance of not just identifying the boundaries but also figuring out how to function within them.
The withdrawal of Solana, Polygon, and Cardano from Bakkt and other platforms affects the liquidity of these tokens and underlines the need for comprehensive and strong regulations within the crypto industry. The course of action taken by Bakkt and similar platforms will substantially influence the future trajectory of digital asset trading, impacting the choices available to retail and institutional investors.
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