Bakkt Delists ADA, SOL, and MATIC Following SEC’s Crypto Classification
Summary: A number of cryptocurrencies have been classified as investment contracts by the SEC, prompting Bakkt Inc to delist ADA, SOL, and MATIC. Additionally, both Robinhood and eToro have done the same. Experts in the field are starting to worry which service will be the next to pull the plug.
Digital currency trading platform Bakkt Inc will delist ADA, SOL, and MATIC after the United States Securities and Exchange Commission (SEC) designated various cryptocurrencies as investment contracts earlier this week.
Being on the Safer Side
Due to regulatory uncertainty, the crypto exchange in Georgia, USA, chose to delist three cryptocurrencies. The company’s chief counsel, Marc D’Annunzio, said that this decision was taken until additional information was available on how to legally provide support for a wider variety of currencies.
Similar Actions in Past
Bakkt, which already offered fewer digital currencies than the industry norm before the SEC’s case against Bittrex, delisted Algorand (ALGO) and Decentraland (MANA) a few months ago because of the litigation. In light of the expanding breadth of industry crackdowns, and in order to effectively manage the small amount of assets currently on its platform, Bakkt has opted to err on the side of caution.
Bakkt now only supports the trading of 6 cryptocurrencies. There is growing fear among industry professionals that the SEC’s classification leading to delisting of some cryptocurrencies might diminish the market liquidity of such tokens.
The cryptocurrency trading platform Robinhood was the first to announce it will no longer accept any of the three tokens. Its delisting is just as detrimental as Bakkt’s, if not more so, since users had access to trading the three affected tokens until the 27th of this month, but Bakkt users will no longer have that option.
Like Robinhood, eToro has said that, until additional information is given by authorities, its American customers will not be allowed to trade in any of the three cryptocurrencies. Delisting is becoming more common, and industry professionals are wondering which provider will be next to drop support.