Bakkt Delists Cardano, Polygon and Solana on Regulatory Grounds

Digital currency trading platform, Bakkt Inc is the next in line to delist Cardano (ADA), Solana (SOL) and Polygon (MATIC), three of the digital currencies that were designated as investment contracts by the United States Securities and Exchange Commission (SEC) earlier this week.

Bakkt Takes a Stance

As reported by Fortune, the Georgia, United States digital currency platform took the stand to delist the three digital currencies based on the regulatory uncertainty hovering around them. The company’s General Counsel Marc D’Annunzio told Fortune it was taking action “until there is further clarity on how to compliantly offer a more extensive list of coins.”

Bakkt, unlike mainstream digital currency trading platforms, is known to support just a streamlined list of digital currencies and the firm delisted the duo of Algorand (ALGO) and Decentraland (MANA) a few months back after the SEC filed a lawsuit against Bittrex. 

With the crackdowns in the industry becoming more encompassing, Bakkt has chosen to stay on the side of caution and to effectively manage the small list of assets without controversy on its platform. At this time, Bakkt only supports the trading of Bitcoin (BTC), Ethereum (ETH), Dogecoin (DOGE), Litecoin (LTC), USDC and Shiba Inu (SHIB) amongst others.

Fast Growing Industry Trend

The delisting of the marked digital currencies by the SEC is fast becoming a major trend, a situation that industry experts have expressed worry could shrink the liquidity of the tokens involved.

Robinhood was the first trading outfit to announce it will be delisting the three digital currencies from its platform. While unlike Bakkt, its move was not immediate as it gave users the leverage to trade the three affected tokens until the 27 of this month, its delisting cannot be deemed to be less hurtful.

After Robinhood, eToro joined the trend as it emphasized that its US customers will no longer gain access to the three digital currencies until there is regulatory clarity around them.

The current woes of Cardano, Solana and Polygon represent a related struggle XRP has had to deal with when the SEC tagged it a security when it charged Ripple Labs Inc in a $1.3 billion lawsuit back in December 2020. With the delisting expanding, industry analysts are keen on knowing which platform will be next to join the trend.