• Bakkt reportedly suspended trading of SOL, MATIC and ADA — tokens the U.S. SEC recently deemed securities.
• Other trading platforms, including Robinhood and eToro, have delisted token pairs due to regulatory uncertainty from the SEC.
• These delistings have caused a decrease in market capitalization for SOL, MATIC and ADA.
Bakkt Suspends Trading of Major Altcoins
New York-based derivatives exchange Bakkt has suspended trading of Solana (SOL), Polygon (MATIC) and Cardano (ADA) following recent lawsuits by the US Securities and Exchange Commission that labelled these tokens as securities. This decision follows similar decisions by exchanges such as Robinhood and eToro who also delisted token pairs due to regulatory uncertainty from the SEC.
Market Capitalization Decreases For SOL, MATIC and ADA
The delisting of altcoins has caused a decrease in market capitalization for SOL, MATIC and ADA. SOL’s market capitalization dropped from $8.78 billion on June 4 to $5.85 billion at the time of writing; 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 in the same period.
SEC Labels Over 20 Digital Assets As Securities
The United States Securities and Exchange Commission labeled over 20 digital assets as securities in their complaints against crypto exchanges Binance and Coinbase which contributed to the regulatory uncertainty leading other trading platforms to delist token pairs in the past days such as Algorand (ALGO), Decentraland (MANA), MATIC and Dash (DASH). The total number of cryptocurrencies now seen as “securities” is estimated at 68 according to Fortune report .
Bakkt Implements Changes Until Further Clarity On How To Compliantly Offer More Coins
Marc D’Annunzio, general counsel and secretary at Bakkt told Fortune that they are implementing changes “until there is further clarity on how to compliantly offer a more extensive list of coins” following their acquisition of blockchain technology platform Apex Crypto in April for $55 million in cash and stock which saw 25 out 36 listed crypto tokens dropped upon its overhauling process .
Crypto Fund Outflows Reach 417 Million Over 8 Weeks
The SEC’s enforcement actions have had major impacts on the crypto space with tightening liquidity for tokens already suffering from the downturn leading some investors into caution with Crypto fund outflows reaching $417M over 8 weeks .