Bakkt, a New York Stock Exchange listed company, is delisting Solana, Polygon, and Cardano, citing regulatory uncertainty, according to Fortune. This decision follows the recent regulatory developments and lawsuits filed by the US Securities and Exchange Commission (SEC) against Binance and Coinbase and the SEC’s classification of these three cryptocurrencies, among others, as securities.
Bakkt’s General Counsel and Secretary, Marc D’Annunzio, stated in a published statement to Fortune that the company is taking proactive measures “until there is further clarity on how to compliantly offer a more extensive list of coins.”
This delisting by Bakkt comes shortly after Robinhood announced a similar move, stating that it will end support for these cryptocurrencies on June 27.
Bakkt, initially launched by Intercontinental Exchange (ICE) in 2018, has prioritized compliance in response to evolving regulatory requirements. After acquiring trading infrastructure provider Apex Crypto in a $155 million deal, Bakkt expanded its cryptocurrency offerings but remained cautious due to regulatory concerns.
During the due diligence process, Bakkt had Apex Crypto delist seven tokens, including Terra and ZCash. Following the acquisition, Bakkt delisted two more tokens, Algorand and Decentraland’s MANA, in response to an SEC lawsuit against Bittrex. In May, the platform delisted an additional 25 out of its remaining 36 tokens as part of its ongoing regulatory coin listing review process.
The delisting of Solana, Polygon, and Cardano reflects the increasingly challenging regulatory environment in the United States, where companies are contending with the SEC’s vigorous enforcement actions. Bakkt’s decision to reduce its cryptocurrency offerings is an effort to navigate the evolving regulatory landscape while awaiting further clarity.
Despite the delistings, Bakkt still supports eight other cryptocurrencies, including Bitcoin, Ethereum, Dogecoin, Litecoin, USDC, and Shiba Inu. The company remains committed to operating within regulatory boundaries but emphasizes the necessity of clear guidelines from regulators.
Bakkt CEO Gavin Michael acknowledges the difficulties presented by regulatory uncertainty, stating, “It’s fine to tell me where I can’t stand, but you have to tell me how to operate.” The delisting of Solana, Polygon, and Cardano by Bakkt, along with similar actions taken by other trading platforms, not only impacts liquidity for the affected tokens but also underscores the need for comprehensive regulations in the cryptocurrency industry.
As the regulatory landscape continues to evolve, industry participants closely monitor developments and adjust their operations to ensure compliance. Bakkt’s delisting of these major cryptocurrencies serves as a reminder of the ongoing challenges and uncertainties faced by crypto exchanges in the United States.