Bakkt Joins Regulatory Scrutiny Trend, Delisting SOL, MATIC, and ADA Amid Uncertainty
New York-based digital assets platform Bakkt has announced the delisting of SOL, ADA and MATIC due to regulatory ambiguity. The decision comes in the wake of recent lawsuits filed by the U.S. Securities and Exchange Commission (SEC) against major crypto exchanges Binance and Coinbase, which alleged the offering of unregistered securities, including Polygon, Solana and Cardano.
Bakkt’s secretary and general counsel, Marc D’Annunzio, stated that the platform is taking this action “until there is further clarity on how to compliantly offer a more extensive list of coins.”
The move reflects the growing concerns and caution within the industry regarding regulatory compliance.
What is Bakkt? Bakkt is a custody service owned by Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange. It provides secure storage for large amounts of Bitcoin, primarily catering to institutional investors. In addition to its custody services, Bakkt offers a Bakkt-branded Bitcoin futures product, allowing traders to speculate on the price movements of Bitcoin.
This delisting decision follows similar actions taken by other prominent platforms. Last week, crypto trading app Robinhood announced its intention to end support for Polygon, Solana and Cardano on June 27 as a response to regulatory pressure. Additionally, social trading platform eToro recently revealed plans to delist MANA, Dash, Polygon and Algorand from its U.S. platform starting from July 12.
In April, Bakkt had taken Algorand and Decentraland off its listing after an SEC lawsuit against Bittrex, prompting their delisting.. Despite these recent delistings, the platform continues to support 8 cryptocurrencies, including BTC, ETH, DOGE, LTC, USDC, and SHIB.
The actions taken by Bakkt and other platforms reflect a wider reassessment of token listings in the crypto industry as regulatory bodies increase scrutiny. Market participants are closely watching for further developments and seeking regulatory clarity to navigate the evolving landscape of digital assets.