Crypto platform Bakkt drops Cardano, Polygon, Solana as SEC scrutiny intensifies

Bakkt is the latest U.S.-based crypto platform to delist Cardano, Polygon, and Solana because of the recent regulatory uncertainty surrounding these assets, Fortune reported on June 16.

Bakkt’s general counsel and secretary Marc D’Annunzio reportedly said:

“[Bakkt is taking this measure] until there is further clarity on how to compliantly offer a more extensive list of coins.”

The U.S. Securities and Exchange Commission (SEC) had labeled the delisted assets as security in its lawsuit against Binance and Coinbase. The financial regulator alleged that the crypto exchanges violated federal securities law and facilitated the trades of unregistered securities tokens.

Meanwhile, the teams behind these digital assets have vehemently rejected this SEC classification.

Bakkt previously delisted digital assets

Bakt delisted 25 digital assets in one swoop in May, including Filecoin, Avalanche, Uniswap, Chainlink, Cosmos, Stellar, and Internet Computer. At the time, a company representative attributed the firm’s decision to the regulatory changes occurring in the crypto space.

Before that, Bakkt had delisted Algorand and Decentraland in April following an SEC lawsuit against Bittrex.

Meanwhile, Bakkt supports eight cryptocurrencies, including Bitcoin, Ethereum, Dogecoin, Litecoin, USDC, and Shiba Inu.

Regulatory uncertainty pushing exchanges to act

SEC’s recent regulatory onslaught has forced several U.S.-based crypto firms to reassess their crypto listing.

During the last seven days, at least two crypto trading firms have announced their decision to end support for some digital assets the SEC had labeled as securities. On June 9, Robinhood said its platform would end support for ADA, SOL, and MATIC by June 27.

Three days later, another trading platform eToro ended its U.S. customers’ access to four cryptocurrencies, including DASH, MANA, ALGO, and MATIC.