- Bakkt decided to delist three cryptocurrencies due to regulatory uncertainties.
- Robinhood was the first exchange to say it would stop supporting all three cryptocurrencies.
Following the United States Securities and Exchange Commission’s (SEC) designation of several cryptocurrencies as investment contracts earlier this week, digital currency trading platform Bakkt Inc will delist Cardano (ADA), Solana (SOL), and Polygon (MATIC).
The crypto exchange based in Georgia, USA, decided to delist three cryptocurrencies due to regulatory uncertainties. Marc D’Annunzio, the company’s general counsel, told that this move was being made “until there is further clarity on how to compliantly offer a more extensive list of coins.”
Concerns Over Liquidity Rises
Due to the SEC’s lawsuit against Bittrex, Bakkt, which is known to offer fewer digital currencies than the industry standard, delisted Algorand (ALGO) and Decentraland (MANA) a few months ago. Bakkt has decided to err on the side of caution in light of the increasing scope of industry crackdowns and to efficiently handle the limited number of assets present on its platform.
Bitcoin (BTC), Ethereum (ETH), Dogecoin (DOGE), Litecoin (LTC), USD Coin (USDC), and Shiba Inu (SHIB) are the only cryptocurrencies that may be traded on Bakkt at the moment. Delisting of the designated digital currencies by the SEC is quickly becoming a significant trend, and experts in the field have raised concerns that this may reduce the liquidity of the tokens in question.
Robinhood was the first exchange to say it would stop supporting all three cryptocurrencies. Its delisting cannot be considered less damaging than Bakkt’s since, unlike Bakkt, it allowed users the ability to trade the three impacted tokens until the 27 of this month.
Following Robinhood’s lead, eToro said that its American clients would no longer be able to trade in any of the three cryptocurrencies until further clarification was provided by regulators. As the trend of delisting grows, experts in the field are curious as to which service will be the next to follow suit.
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