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American digital asset company Bakkt has delisted three major cryptocurrencies, Solana (SOL), Polygon (MATIC), and Cardano (ADA), in compliance with the regulatory crackdown by the United States Securities Exchange and Commission (SEC).
Bakkt Delists Three Cryptocurrencies
Originally, Bakkt offered only trading of bitcoin and ether to investors. In November 2022, however, the company announced the acquisition of crypto trading platform Apex Crypto for up to $200 million. The acquisition deal, which concluded in April, saw the digital asset firm facilitating the trading of several cryptocurrencies.
During last year’s due diligence process, Bakkt delisted eight cryptocurrencies in compliance with regulatory authorities. These assets included collapsed Terra LUNA and Crypto.com Coin (CRO) tokens.
In mid-April, the asset manager delisted two cryptocurrencies, Algorand (ALGO) and Decentraland (MANA), as the U.S. SEC termed them as securities during a clampdown on the crypto exchange, Bittrex.
Last month, Bakkt proceeded to delist 25 more cryptocurrencies due to a “regulator coin listing review process.” These assets include Uniswap (UNI), Aave (AAVE), Avalanche (AVAX), ApeCoin (APE), and more.
Today, the digital asset firm downsizes its cryptocurrencies list by delisting SOL, MATIC, and ADA. The company stated that this action is due to the SEC’s definition of the three assets as securities in a document filed against Binance and Coinbase.
Notably, Bakkt is not the first company to make such a move. Trading platform Robinhood made a similar move last week as it delisted SOL, MATIC, and ADA, also citing the SEC’s view of securities.
Ripple Effect of U.S. SEC’s Regulatory Crackdown
On June 5th, the U.S. SEC sued Binance over claims of facilitating the sale of cryptocurrencies termed as securities. The following day, the financial agency sued a similar lawsuit against the American-based crypto exchange Coinbase.
In the court filing, the SEC referred to multiple crypto assets as securities, emphasizing that these need to be registered with the agency before offering them to U.S. investors. The two-week-long legal tussle has triggered a massive selloff from the crypto market, resulting in a wave of bearish trends.
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