Bakkt follows Robinhood, eToro in delisting major altcoins: Report

New York-based derivatives exchange Bakkt is delisting three popular altcoins due to current regulatory developments in the United States. According to a Fortune report, trading of Solana (SOL), Polygon (MATIC), and Cardano (ADA) has been suspended.The decision follows recentlys lawsuits brought by the Securities and Exchange Commission (SEC) versus crypto exchanges Binance and Coinbase. In the complaints, the regulator labeled over 20 digital properties as securities, including SOL, MATIC, and ADA. The overall number of cryptocurrencies the U.S. regulator views as a “security” has actually now reached an estimated 68. Marc DAnnunzio, Bakkts basic counsel and secretary, informed Fortune the business was executing changes “till there is further clarity on how to compliantly use a more comprehensive list of coins.”The SECs enforcement actions have contributed to regulatory uncertainty, leading other trading platforms to delist token pairs in the previous days. Previously this week, eToro stopped purchases of Algorand (ALGO), Decentraland (MANA), MATIC and Dash (DASH) for U.S. customers, simply a couple of days after its rival Robinhood ended assistance for SOL, MATIC, and ADA. Related: Crypto fund outflows reach $417M over 8 weeks as investor care persistsAmong the major effects on the crypto space, the delisting of altcoins tightens up liquidity for tokens already struggling with the market downturn. Together, MATIC, ADA, and SOL lost nearly $10 billion in market capitalization, according to information from CoinMarketCap. SOLs market capitalization dropped from $8.78 billion on June 4 to $5.85 billion at the time of composing; ADAs market cap dipped from $13.31 billion to $9 billion, while MATICs market cap decreased from $8.37 billion to $5.32 billion in the exact same period.SOLs market capitalization over the past 30 days. Source: CoinMarketCapBakkts delisting follows its acquisition of blockchain innovation platform Apex Crypto in April for $55 million in money and stock. After the acquisition, Bakkt also promoted an overhaul of token sets trading on the platform, dropping 25 of the 36 listed crypto tokens. Publication: Crypto regulation– Does SEC Chair Gary Gensler have the final say?

Other Questions People Ask

What prompted Bakkt to follow Robinhood and eToro in delisting major altcoins?

Bakkt's decision to delist major altcoins like Solana (SOL), Polygon (MATIC), and Cardano (ADA) was primarily driven by recent regulatory developments in the United States. The Securities and Exchange Commission (SEC) has labeled these altcoins as securities in lawsuits against crypto exchanges, creating significant regulatory uncertainty. As a result, Bakkt is taking precautionary measures until there is clearer guidance on compliant trading practices for cryptocurrencies.

How does the delisting of altcoins by Bakkt affect the cryptocurrency market?

The delisting of altcoins by Bakkt, along with similar actions from Robinhood and eToro, has tightened liquidity for these tokens, which are already facing market challenges. Following the announcements, the combined market capitalization of SOL, MATIC, and ADA dropped nearly $10 billion. This decline reflects broader investor concerns and contributes to a more volatile trading environment in the cryptocurrency market.

What are the implications of the SEC's actions on Bakkt's trading platform?

The SEC's enforcement actions have led Bakkt to reevaluate its trading offerings, resulting in the suspension of several altcoins. With over 20 digital assets classified as securities, Bakkt is adjusting its operations to ensure compliance with regulatory standards. This shift may lead to further changes in the types of cryptocurrencies available for trading on their platform until clearer regulations are established.

What other platforms have followed Bakkt in delisting altcoins?

In addition to Bakkt, both Robinhood and eToro have recently delisted major altcoins due to similar regulatory pressures. Robinhood ceased support for SOL, MATIC, and ADA, while eToro halted purchases of Algorand (ALGO), Decentraland (MANA), MATIC, and Dash (DASH) for U.S. customers. These actions highlight a growing trend among trading platforms to reassess their offerings in light of regulatory scrutiny from the SEC.

What should investors consider following Bakkt's delisting of major altcoins?

Investors should closely monitor regulatory developments and understand how they may impact their cryptocurrency holdings following Bakkt's delisting. The classification of altcoins as securities could lead to further restrictions or changes in trading practices across various platforms. Additionally, investors may want to reassess their portfolios and consider diversifying into assets that are less affected by regulatory uncertainty.