Bakkt has reportedly suspended trading in SOL, MATIC, and ADA tokens, which were recently recognized as securities by the US Securities and Exchange Commission.
Bakkt, a New York-based derivatives exchange, has delisted three popular altcoins due to recent changes in US law. Trading on Solana (SOL), Polygon (MATIC) and Cardano (ADA) has been suspended, according to Fortune.
The decision follows lawsuits filed last week by the US Securities and Exchange Commission against cryptocurrency exchanges Binance and Coinbase. In the complaint, regulators classify more than 20 digital assets as securities, including SOL, MATIC and ADA. The total number of cryptocurrencies deemed “safe” by US regulators has reached about 68.
Mark D'Annunzio, Bakkt's general counsel and secretary, told Fortune that the company is making changes "to provide more clarity on how to offer a more comprehensive list of coins."
Enforcement action by the SEC has added regulatory uncertainty, leading other trading platforms to delist token pairs in recent days. Earlier this week, eToro suspended purchases of Algorand (ALGO), Decentraland (MANA), MATIC, and Dash (DASH) for US customers following SOL competitor Robinhood MATIC and just days after ADA support ended.
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Among the biggest implications for the cryptocurrency space, the elimination of cryptocurrencies reduces the liquidity of altcoins, which are already experiencing a downturn in the market. MATIC, ADA, and SOL collectively lost about $10 billion in market capitalization, according to CoinMarketCap data.
SOL's market capitalization has fallen from $8.78 billion on June 4 to $5.85 billion at the time of writing; ADA's market capitalization has decreased from $13.31 billion to $9 billion, while Matik's market capitalization has decreased from $8.37 billion to $5.32 billion over the same period.
Bakkt's cancellation follows April's acquisition of blockchain technology platform Apex Crypto for $55 million in cash and stock. After the acquisition, Bakkt also promoted reviews of token pairs traded on the platform, removing 25 of the 36 listed tokens.
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