- Bakkt has delisted Cardano (ADA), Solana (SOL), Polygon (MATIC) and in response to regulatory uncertainty and recent SEC lawsuits against cryptocurrency exchanges.
- Bakkt has taken a compliance-first approach, actively reducing its token list to ensure regulatory compliance.
- The delisting reflects the increasingly hostile regulatory environment in the United States, with Bakkt aiming to navigate the evolving landscape until more clarity on compliant offerings becomes available.
Bakkt, a New York-based digital assets platform, has opted to delist three major cryptocurrencies—Cardano, Solana, and Polygon—due to regulatory uncertainty and a lack of clarity. This action follows recent lawsuits filed by the Securities and Exchange Commission (SEC) against leading cryptocurrency exchanges Coinbase and Binance, alleging the sale of unregistered securities such as Cardano, Solana, and Polygon.
The SEC’s legal actions signified the first time these three crypto-assets were explicitly identified as securities. While SEC Chairman Gary Gensler has repeatedly stated that most cryptocurrencies, except Bitcoin, fall under securities, this regulatory development has prompted Bakkt and other crypto platforms to reconsider their token listings.
Bakkt was founded as a custody service for institutional investors’ Bitcoin holdings by Intercontinental Exchange (ICE), the parent of the New York Stock Exchange (NYSE).
It gradually expanded its services, including a cryptocurrency trading app for retail investors. However, Bakkt discontinued its retail offerings in March, citing a need for alignment with its B2B2C strategy.
Bakkt Delists Major Cryptocurrencies
Bakkt’s general counsel and secretary, Marc D’Annunzio, explained that the delisting decision was motivated by the need for more clarity on how to offer a broader range of cryptocurrencies compliantly. Bakkt’s intention to wait for more guidance before expanding its coin offerings was reported by Fortune.
The platform decided to delist Cardano, Solana, and Polygon shortly after the popular trading app Robinhood announced that its support for these three assets would be discontinued by June 27. Various industry participants have reevaluated their offerings in response to the SEC’s regulatory actions in response to the evolving regulatory landscape.
Bakkt CEO Gavin Michael acknowledges the challenges posed by current regulatory uncertainty, emphasizing the importance of knowing where the boundaries are and understanding how to operate within them.
The delisting of Polygon, Solana, and Cardano by Bakkt and other trading platforms affects not only the liquidity of these tokens but also highlights the need for robust and comprehensive regulations in the cryptocurrency industry.
Bakkt’s and other platforms’ decisions will significantly impact the future landscape of digital asset trading and the options available to retail and institutional investors.
Despite the delistings, the platform still supports eight other popular cryptocurrencies, including Bitcoin, Ethereum, Dogecoin, Litecoin, USDC, and Shiba Inu.
The company maintains its commitment to regulatory compliance but emphasizes the critical need for regulators to provide comprehensive guidelines and a clearer roadmap for operating in the crypto space.
