Bakkt, a prominent cryptocurrency trading platform, has joined the likes of Robinhood and eToro by suspending trading of several major altcoins.
The decision came after the United States Securities and Exchange Commission (SEC) recently classified SOL, MATIC, and ADA as securities, prompting regulatory uncertainty in the crypto market.
The SEC’s recent lawsuits against Binance and Coinbase, in which the regulator categorized more than 20 digital assets as securities, have caused ripple effects across the industry.
This brings the total number of cryptocurrencies considered securities by the SEC to an estimated 68. In response to this regulatory landscape, Bakkt has chosen to suspend trading until there is greater clarity on how to compliantly offer a wider range of coins.
The delisting of altcoins by Bakkt, eToro, and Robinhood has significant implications for the crypto space. It further tightens liquidity for these tokens, which have already been impacted by the market downturn.
CoinMarketCap data reveals that MATIC, ADA, and SOL collectively lost nearly $10 billion in market capitalization. SOL’s market cap decreased from $8.78 billion on June 4 to $5.85 billion.
ADA’s market cap dipped from $13.31 billion to $9 billion, and MATIC’s market cap declined from $8.37 billion to $5.32 billion within the same period.
Bakkt’s decision to delist altcoins comes after its acquisition of Apex Crypto, a blockchain technology platform, for $55 million in cash and stock in April.
Following the acquisition.,Bakkt initiated an overhaul of token pairs traded on its platform, resulting in the removal of 25 out of the 36 listed crypto tokens.
The SEC’s enforcement actions have sent shockwaves through the cryptocurrency industry, leading to heightened regulatory concerns and subsequent delistings.
While these actions aim to ensure compliance and protect investors, they have introduced uncertainties for trading platforms and investors alike. As the industry evolves, market participants will closely monitor regulatory developments to navigate this ever-changing landscape.
Other Stories:
OKX Middle East Receives MVP Preparatory License From VARA in Dubai
Tether responds to controversy over accounts deactivation
