New York-based digital assets platform Bakkt has decided to delist three major cryptocurrencies, namely Solana (SOL), Polygon (MATIC), and Cardano (ADA). However, the move comes in response to recent regulatory developments and lawsuits filed by the U.S. Securities and Exchange Commission (SEC) against crypto exchanges Binance and Coinbase. The SEC’s complaints labeled Solana’s SOL, Polygon’s MATIC, and Cardano’s ADA as securities, prompting Bakkt to take proactive action.
Compliance-first approach and delisting process
Bakkt, initially launched by Intercontinental Exchange (ICE) in 2018, has adopted a compliance-first approach in the face of evolving regulatory requirements. Following its acquisition of 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. After the acquisition, Bakkt delisted two more tokens, Algorand and Decentraland’s MANA, in response to an SEC lawsuit against Bittrex. The platform further delisted 25 of its remaining 36 tokens in May, citing its ongoing regulatory coin listing review process.
Navigating a hostile crypto environment
The delisting of Solana, Polygon, and Cardano reflects the increasingly hostile regulatory landscape in the United States, where firms are grappling with the SEC’s aggressive enforcement actions. Bakkt’s decision to reduce its cryptocurrency offerings is an attempt to navigate the evolving regulatory environment while awaiting further clarity. Despite the delistings, Bakkt offers eight other cryptocurrencies, including Bitcoin, Ethereum, Dogecoin, Litecoin, USDC, and Shiba Inu. The company remains committed to operating within regulatory boundaries but emphasizes the need for clear guidelines from regulators.
Bakkt CEO Gavin Michael acknowledges the challenges posed 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 evolves, industry participants closely monitor developments and adjust their operations to ensure compliance. The delisting of these major cryptocurrencies by Bakkt serves as a reminder of the ongoing challenges and uncertainties faced by crypto exchanges in the United States.
