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Bakkt recently made an announcement regarding the removal of ADA, MATIC, and SOL from its platform.
The reason cited for this action is the uncertainty surrounding regulations. This move is consistent with a growing trend of altcoin delistings due to increased scrutiny from the U.S. Securities and Exchange Commission (SEC).
Similar to Robinhood and eToro, Bakkt has decided to suspend all services related to ADA, MATIC, and SOL due to the ongoing regulatory ambiguity surrounding these tokens.
The decision to delist these altcoins reflects the concerns within the industry about the legal status of coins mentioned in the SEC’s lawsuits against Binance U.S. and Coinbase.
The chairman of the SEC, Garry Gensler, has previously mentioned that all cryptocurrencies, except for Bitcoin, could potentially fall under the jurisdiction of the SEC. The commission’s recent actions have classified altcoins such as Cardano Polygon, Solana, and others as securities.
Since these significant lawsuits, the entire U.S. crypto sector has faced the repercussions of the SEC’s crackdown. Crypto exchanges, in particular, find themselves in a challenging situation.
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Following Binance U.S.’s footsteps, other companies have chosen to delist altcoins. On June 9, Robinhood announced the end of support for Cardano Polygon and Solana. Soon after, eToro informed its U.S.-based customers that they would no longer be able to trade ALGO, MANA, DASH, and MATIC.
Adding to the list of disappointments for U.S. investors, Bakkt is now preparing to remove major altcoins from its platform. The General Counsel and Secretary of the company, Marc D’Annunzio, revealed this news. In a recent interview, D’Annunzio stated that these tokens would remain unavailable until there is more clarity on how to compliantly offer a broader range of coins.
While the recent delisting of ADA, MATIC, and SOL aligns with the efforts of U.S. exchanges to protect themselves from potential SEC charges, Bakkt’s actions to streamline its crypto offerings precede these regulatory concerns.
In the previous month, Bakkt initiated a series of delistings, removing tokens like AAVE, ENJ, UNI, XLM, and XTZ, among others.