• The U.S. SEC has recently deemed three major altcoins—Solana (SOL), Polygon (MATIC) and Cardano (ADA)—as securities, leading to Bakkt suspending trading of the tokens.
• Robinhood and eToro have also delisted SOL, MATIC and ADA for U.S. customers due to regulatory uncertainty in the crypto space.
• Together, these three tokens have lost nearly $10 billion in market capitalization over the past few days as a result of the delisting.
Bakkt Suspends Trading of Major Altcoins
New York-based derivatives exchange Bakkt has suspended trading of Solana (SOL), Polygon (MATIC) and Cardano (ADA) due to recent regulatory developments in the United States. According to a Fortune report, this decision follows last week’s lawsuits brought by the U.S. Securities and Exchange Commission against Binance and Coinbase which labeled these tokens as securities.
Robinhood and eToro Follow Suit
The enforcement actions taken by the SEC have led other trading platforms like Robinhood and eToro to delist token pairs for U.S customers as well due to rising regulatory uncertainty in the crypto space.. Earlier this week, eToro halted purchases of Algorand (ALGO), Decentraland (MANA), MATIC and Dash (DASH). Just a few days prior, Robinhood ended support for SOL, MATIC and ADA as well.
Altcoins Suffer Market Downturn
The delisting of these altcoins has tightened liquidity for tokens already suffering from the market downturn resulting in a combined loss of nearly $10 billion in market capitalization according to CoinMarketCap data over the past few days alone: SOL’s market capitalization dropped from $8.78 billion on June 4th to $5.85 billion; ADA’s market cap dipped from $13.31 billion to $9 billion; while MATIC’s market cap declined from $8.37 billion to $5.32 billion over that period as well .
Bakkt Implements Changes
Marc D’Annunzio general counsel at Bakkt expressed that until there is further clarity on how offer an extensive list of coins compliantly, changes must be implemented accordingly on their end as well . After its acquisition of blockchain technology platform Apex Crypto earlier this year for cash & stock , Bakkt also promoted an overhaul of token pairs being traded on their platform , dropping 25 out f 36 listed crypto tokens .
In conclusion , recent regulatory developments by various enforcement agencies have caused traders & investors alike much uncertainty resulting in major losses across multiple digital assets . As time progresses , it will certainly be interesting to see how regulations impact not only large institutional players but retail investors & hobbyists alike ..