Bakkt is the latest US-crypto platform to delist a series of cryptocurrencies which face regulatory hurdles, namely Cardano, Polygon and Solana, as reported by Fortune on June 16.
Bakkt crypto offerings grow thin
To date, Bakkt now supports 8 cryptocurrencies, which include Bitcoin, Litecoin, Ethereum, Shiba Inu and Dogecoin.
The corporation’s general counsel and secretary Marc D’Annunzio reportedly said:
“[Bakkt is taking this measure] until there is further clarity on how to compliantly offer a more extensive list of coins.”
The Securities and Exchange Commission (SEC) labelled the delisted assets as securities in its recent lawsuit against Binance and Coinbase. The regulator alleged that both exchanged violated securities law and enabled trading for unregistered security tokens.
Both exchanges have strongly rejected SEC claims and are preparing for ongoing litigation which could last sometime.
Bakkt delisting assets
Bakkt delisted 25 cryptocurrencies in one swoop in May, including Filecoin, Avalanche, Uniswap, Chainlink, Cosmos, Stellar, and Internet Computer. At the time, a company rep. said the firm based its decision on regulatory nuances taking place in the emerging space.
Before that, Bakkt had listed Algorand and Decentraland in April following another SEC lawsuit against Bittrex exchange.
Bakkt now supports eight cryptocurrencies, including Bitcoin, Ethereum, Dogecoin, Litecoin, USDC, and Shiba Inu. However, this offering might get cut down further if regulatory zealotry and over reach is not matched tit for tat by crypto legitimate businesses.
Regulatory zealotry & uncertainty
The SEC has faced strong criticism against its methods, which have been characterised as ‘regulation by enforcement’ by key players in crypto.
Gemini exchange co-founder Tyler Winklevoss recently accused the SEC of favouring ‘fake’ businesses over ‘real’ ones.
— Tyler Winklevoss (@tyler) June 15, 2023
Regardless, the SEC’s heavy handedness against the industry have obliged US-based crypto companies to reassess their position.
During the last seven days, at least two crypto firms have declared that they will discontinue support for specific digital assets classified as securities by the SEC. On June 9, Robinhood announced that it would discontinue support for ADA, SOL, and MATIC by June 27.
Just three days later, crypto trading platform eToro ended its US customers’ access to four cryptos, including DASH, MANA, ALGO, and MATIC.
Join the telegram channel for updates, charts, ideas and deals.
Did you like the article? Share it!