Bakkt, a New York-based digital assets platform, has announced the delisting of Solana, Polygon, and Cardano. The decision comes amidst a climate of regulatory uncertainty, which has led to an industry-wide reassessment of token listings.
Marc D'Annunzio, the general counsel and secretary of Bakkt, stated to Fortune that the action was taken until there's "further clarity on how to compliantly offer a more extensive list of coins." This precautionary measure comes in the wake of the U.S. Securities and Exchange Commission's (SEC) recent lawsuits against crypto exchanges Binance and Coinbase. The SEC has alleged these platforms were offering unregistered securities to their customers, including Solana, Polygon, and Cardano.
The lawsuits have sent ripples through the crypto industry, prompting other platforms to take similar actions. Last week, fintech app Robinhood followed suit and announced it would cease support for Solana, Polygon, and Cardano starting June 27. Not far behind, eToro, the social trading platform, confirmed on Tuesday it would delist Polygon, Decentraland, Dash, and Algorand on its U.S. platform effective from July 12.
Bakkt's decision to delist these cryptocurrencies isn't unprecedented. In April, it delisted Algorand and Decentraland, following an SEC lawsuit against Bittrex. As of now, Bakkt continues to support eight other cryptocurrencies including Bitcoin, Ether, Dogecoin, Litecoin, USDC, and Shiba Inu.
The regulatory landscape for cryptocurrencies is rapidly changing and the industry's response, including Bakkt's actions, highlight the need for clear legal guidelines for crypto assets. This is a developing story, demonstrating the complexities of integrating novel digital currencies into the traditional financial system, and the importance of appropriate regulatory frameworks to ensure customer protection and maintain market integrity.