Bakkt Set to Delist Solana, Cardano and Polygon Following the SEC Lawsuit
The fast-growing publicly-listed digital asset custodial platform in New York, Bakkt, has announced plans to delist some crypto assets. In an interview with the Fortune on June 16, the Bakkt team stated that regulatory pressure had compelled the firm to delist major crypto assets such as Solana, Polygon and Cardano from the platform.
The Bakkt team lamented that the firm would remove the three crypto assets from its trading platform due to a lack of regulatory clarity.
Bakkt Delist Three Crypto Assets
A recent analysis of the performance of the Solana, Polygon and Cardano it was witnessed that the three crypto ranks among the top 20 digital assets with a measurable trading volume. Notably, the Bakkt decision came days after the US Securities and Exchange Commission (SEC) accused Binance and Coinbase of violating the regulations.
The SEC accused the two crypto exchanges of offering the public unregistered securities. In their statement, the SEC provided a list of nineteen crypto assets classified as securities. From the list, the SEC recognized Solana, Cardano and Polygon as securities.
Before this, the SEC chair Gary Gensler had confirmed that most crypto assets except Bitcoin (BTC) were securities. Surprisingly, the Bakkt announcement mirrors the action taken by the American trading platform Robinhood.
On June 9, the Robinhood team confirmed to cease supporting Solana, Cardano and Polygon from June 27. The Robinhood announcement stated that the SEC lawsuit against Binance and Coinbase created a cloud of uncertainty. This compelled the trading platform to end support to the three crypto assets to uphold compliance with the SEC regulations.
Impact of SEC Lawsuit Against Binance and Coinbase
Subsequently, on June 14, the Israeli trading platform eToro suspended the purchase of Polygon (MATIC), Algorand (ALGO), Dash (DASH) and Decentraland (MANA). The eToro team stated that the recent SEC legal action on Coinbase and Binance has prompted the firm to remove the four cryptos from its trading platform. The eToro group anticipates delisting the four coins in July.
On the contrary, the Bakkt team claimed that to continue supporting the three crypto-assets, it was important to have further regulatory clarity on listing the digital coins. The Bakkt team requested the regulators to guide them in listing crypto assets.
Since 2018 the Bakkt team has provided Bitcoin custodial services to institutional investors. Under the management of Intercontinental Exchange (ICE), Bakkt has also provided retail clients with a platform to trade their crypto assets.
However, due to dynamism in the crypto sector, the Bakkt team suspended its retail offering in March after failing to support its B2B and B2C core businesse. Reportedly the SEC regulatory approach in governing the operation of the crypto sector has interfered with eToro listing in the past.
In 2020 the eToro team temporarily suspended the listing of the Ripple native token (XRP) after SEC charged the crypto firm for offering unregistered securities worth $1.3 billion.
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