Revolut, a prominent UK-based fintech app, has made the decision to discontinue providing Solana (SOL), Cardano (ADA), and Polygon (MATIC) tokens to its customers in the United States. This move follows the delisting of these cryptocurrencies by its provider, Bakkt Holdings Inc., in response to the US Securities and Exchange Commission’s (SEC) classification of these tokens as unregistered securities. As regulatory scrutiny intensifies within the crypto industry, Revolut’s decision reflects the broader trend of platforms adjusting their offerings to adhere to evolving regulations.
Revolut Responds to Regulatory Pressure
Revolut, the popular UK-based fintech app, has announced that it will no longer offer Solana (SOL), Cardano (ADA), and Polygon (MATIC) tokens to its US customers. The decision follows a move by its provider, Bakkt Holdings Inc., to delist these cryptocurrencies. This change is a direct response to the US Securities and Exchange Commission’s (SEC) recent classification of these tokens as unregistered securities in its lawsuits against major crypto exchanges Coinbase Global Inc. and Binance Holdings in June.
While Revolut customers in the US will have until September 18 to exit their positions, the platform will automatically sell any remaining tokens at the prevailing market price and convert them into dollar deposits.
Platforms Limit Crypto Offerings in Response to Regulatory Scrutiny
Revolut’s decision is part of a larger trend in the crypto industry, with various platforms adjusting their offerings in response to regulatory challenges. In June, Robinhood Markets Inc., a popular US-based trading platform, also revealed its plans to remove Solana, Cardano, and Polygon tokens from its list of supported cryptocurrencies. Furthermore, eToro, an Israel-based social-trading platform, recently barred its US users from opening new positions in several crypto tokens, including Algorand, Decentraland, Dash, and Polygon.
These actions by leading fintech platforms highlight the growing concerns surrounding regulatory compliance and the potential legal risks associated with offering certain cryptocurrencies. The SEC’s recent lawsuits against Coinbase and Binance, two prominent exchanges, have further intensified these concerns and prompted platforms to reevaluate their cryptocurrency offerings for US customers.
Retail Investors Continue to Drive Crypto Demand
While institutional investors have demonstrated caution towards crypto investments, retail investors continue to display ongoing interest and engagement in the digital asset space. Mike Novogratz, the founder of Galaxy Digital Holdings Ltd., recently noted that despite institutional retrenchment, retail investors have been consistently investing in cryptocurrencies through popular platforms like Square, Robinhood, and Revolut in the UK.
Revolut’s decision to delist Solana, Cardano, and Polygon tokens in the US highlights the complex interplay between regulatory pressures, platform choices, and investor preferences. As cryptocurrencies face heightened scrutiny from regulators worldwide, fintech platforms are forced to navigate a rapidly evolving landscape to ensure compliance and maintain a trusted relationship with their users.
Despite the recent announcement, there are no immediate plans to delist these tokens in other markets where Revolut operates, implying that customers outside the US will still have access to these digital assets.
Conclusion
Revolut’s decision to stop offering Solana, Cardano, and Polygon tokens to its US customers is a direct response to Bakkt Holdings Inc.’s delisting decision and the US SEC’s classification of these tokens as unregistered securities. This move reflects the increasing regulatory pressure faced by the crypto industry and is part of a broader trend of platforms adjusting their crypto offerings to comply with evolving regulations. While institutional investors exhibit caution, retail investors continue to show interest, contributing to the ongoing demand for cryptocurrencies.
