The world of cryptocurrencies has seen a dramatic turn with the New York Stock Exchange-listed company Bakkt delisting Solana, Polygon, and Cardano, citing regulatory uncertainty. This decision follows the recent announcement by the US Securities and Exchange Commission (SEC), stating that these three cryptocurrencies, among others, are considered securities. Bakkt’s General Counsel and Secretary, Marc D’Annunzio, mentioned in a statement that the company is taking proactive steps, awaiting further clarity on offering a more extensive list of coins compliantly.
This move comes on the heels of a similar decision by Robinhood, which plans to end support for these cryptocurrencies on June 27. The SEC’s pursuit continues to impact the industry, with repercussions extending to major players such as Binance and Coinbase.
On June 5, the SEC sued Binance and CEO Changpeng Zhao for their alleged “blatant disregard” of securities laws and defrauding of investors. Meanwhile, the SEC claimed that Coinbase was operating its exchange unlawfully without registering with the agency. In both instances, the regulator identified Solana, Polygon, and Cardano as securities.
This stance against cryptocurrencies comes from SEC Chair Gary Gensler, who has previously voiced the opinion that most cryptocurrencies qualify as securities. He has also called on crypto exchanges to register, reiterating this viewpoint at the Piper Sandler Global Exchange & Fintech Conference on June 8. Gensler highlighted that just because cryptocurrencies are digital does not differentiate them from securities and currencies in the vast capital markets.
It is worth mentioning that former SEC Chair Jay Clayton seems to share this view. He stated, “I think the market has evolved, but many, if not the vast majority, of the tokens that were sold for cash would fall within the definition of a security in America.”
The mounting pressure and uncertainties around cryptocurrency regulations have struck debates among enthusiasts and professionals alike. On one side, strict regulations might restrict innovation and the growth of the industry. Conversely, well-defined regulations could potentially provide a stable, trusted environment for cryptocurrencies, attracting mainstream adopters. With opaqueness surrounding the future framework, these decisions by major companies like Bakkt and Robinhood seem reasonable as they cautiously anticipate regulatory clarity.
This regulatory landscape is sure to have lasting impacts on the blockchain and cryptocurrency sector. As the market evolves and adapts, it remains to be seen how government bodies will navigate these new frontiers, ultimately shaping the future of these emerging technologies.
Source: Cryptonews
