U.S. Securities and Exchange Commission (SEC)

2023-6-17 17:30

Bakkt has announced the delisting of ADA, MATIC, and SOL, citing regulatory ambiguity as the reason. This move aligns with the recent trend of altcoin delistings due to the SEC’s intensified scrutiny.

Following similar moves by Robinhood and eToro, the U.S.-based firm said it would suspend all ADA, MATIC, and SOL services in light of the current regulatory uncertainty surrounding the tokens.

Exchanges Shun Altcoins Following SEC Classification

The recent delisting frenzy reflects widespread industry concerns over the legal status of coins named in the Securities and Exchange Commission’s (SEC) lawsuits against Binance U.S. and Coinbase.

SEC Chairman Garry Gensler has previously stated that all cryptocurrencies other than Bitcoin could theoretically fall under the SEC’s jurisdiction. And the commission’s latest maneuvers categorize Cardano Polygon, Solana, and other altcoins as securities.

Since those ground-shaking lawsuits, the wider U.S. crypto sector has been reeling from the SEC’s crackdown. And crypto exchanges, especially have found themselves in a sticky situation.

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Robinhood, eToro, and Bakkt Delist Major Altcoins

But while Binance U.S. may have opted to suspend all USD deposits and withdrawals pending a resolution, other firms have gone down the delisting path.

Leading the way, on June 9, Robinhood said it would end support for Cardano Polygon and Solana. Several days later, eToro announced that its U.S.-based customers would be barred from trading in ALGO, MANA, DASH, and MATIC.

And now, in the latest loss for U.S. investors, Bakkt is also preparing to pull major altcoins from its platform.

The company’s General Counsel and Secretary, Marc D’Annunzio revealed the news. In an interview published on Friday, D’Annunzio said that the tokens would remain unavailable “until there is further clarity on how to offer a more extensive list of coins compliantly.”

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Bakkt Pivots Away From Retail Crypto Services

The recent delisting of ADA, MATIC, and SOL is in line with moves by U.S. exchanges to shelter themselves from potential SEC charges. But Bakkt’s efforts to streamline its crypto offering predate the latest regulatory threat.

Last month, the firm went on a delisting frenzy. That saw it drop tokens such as AAVE, ENJ, UNI, XLM, and XTZ, among others.

The decision to delist a number of prominent altcoins is in line with Bakkt’s long-term strategy. As outlined when it finalized the acquisition of Apex Crypto in April, Bakkt is pivoting away from the retail market. Instead, it is refocusing on business-to-business (B2B) services.

To this end, the firm acquired Apex’s turnkey crypto trading platform to help bolster its B2B offering. Likewise, Bakkt wound down its own retail cryptocurrency exchange in February.

With Bakkt increasingly focused on the B2B market, providing an extensive coin offering is less important. Apparently, its business clients are more interested in its ability to securely and efficiently power Bitcoin and ether transactions.