Trading in the tokens Solana, Polygon, and Cardano—which the U.S. SEC recently considered securities—has apparently been suspended by Bakkt.
Due to recent regulatory changes in the US, the New York-based derivatives exchange Bakkt has chosen to delist three well-known cryptocurrencies, Solana, Polygon, and Cardano. The action was taken in response to litigation the Securities and Exchange Commission (SEC) filed against prominent cryptocurrency exchanges Binance and Coinbase, classifying over 20 digital assets, including SOL, MATIC, and ADA, as securities.
According to Marc D’Annunzio, general counsel for Bakkt, the exchange is making these adjustments since it is unclear how to legally offer a wider variety of coins. Other trading platforms have delisted token pairs as a result of regulatory uncertainty brought on by the SEC’s enforcement activities.
Algorand, Decentraland, MATIC, and Dash purchases on eToro and support for SOL, MATIC, and ADA on Robinhood were just suspended for US consumers.
The cryptocurrency market has been significantly impacted by the delisting of several cryptocurrencies, especially in terms of liquidity. The elimination of these tokens significantly reduces liquidity for assets that are already having trouble as a result of the market’s slump. According to CoinMarketCap data, the market capitalization of MATIC, ADA, and SOL fell by a combined $10 billion.
SOL saw a decline in market value from $8.78 billion on June 4 to $5.85 billion, ADA saw a decline in market cap from $13.31 billion to $9 billion, and MATIC saw a decline in market cap from $8.37 billion to $5.32 billion during the same time period. These numbers demonstrate the financial hardships that these cryptocurrencies are experiencing as a result of the delisting and regulatory uncertainties in the U.S. market.