In an era characterized by digital currency prominence, major crypto exchanges are reassessing their offerings. This follows lawsuits filed by the U.S. Securities and Exchange Commission (SEC) against Coinbase and Binance, two dominant players in the crypto industry. The SEC alleges these platforms were dealing in unregistered securities, notably Solana, Cardano, and Polygon. Gary Gensler, the SEC Chairman, argues that, with the exception of Bitcoin, most cryptocurrencies are indeed securities.
Bakkt and Robinhood Shift Gears
BREAKING:— whalechart (@WhaleChart) June 16, 2023
Bakkt delists Solana, Polygon, and Cardano, citing lack of regulatory clarity
Subsequently, Bakkt, a renowned one-stop cryptocurrency platform, is preparing to delist Solana, Cardano, and Polygon. Bakkt has cited regulatory ambiguity as the driving force behind this move. Significantly, these digital assets rank among the top 20 largest by market cap, amplifying the impact of this decision.
Similarly, Robinhood, a widely-used trading app, declared its intention to terminate support for these three cryptocurrencies. The decision is scheduled to take effect from June 27. This move appears to align with the increased scrutiny from regulators, further emphasizing the SEC’s influence on crypto platforms.
eToro Follows Suit
Following the same trajectory, eToro, a social trading platform, also announced its plan to delist Polygon along with Decentraland, Dash, and Algorand from its U.S. platform starting July 12. Bakkt had previously dropped Algorand and Decentraland in April, in the wake of a lawsuit against Bittrex filed by the SEC.
However, Bakkt continues to back eight other cryptocurrencies, including Bitcoin, Ether, Dogecoin, Litecoin, USDC, and Shiba Inu. Despite the changing landscape, these digital assets still find support in this major crypto custodian.
This ongoing reshuffle within crypto exchanges illustrates a profound regulatory impact on the digital asset industry. As authorities tighten their grip on unregistered securities, crypto platforms are being forced to adapt, demonstrating the evolving relationship between digital currencies and regulatory frameworks. The coming days promise to reveal how these regulations shape the future of the digital asset industry.