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New York-based derivatives exchange Bakkt has delisted three popular altcoins due to recent changes in US law. Solana (SOL), Polygon (MATIC), and Cardano (ADA) have been suspended trading, according to a Fortune report.
The decision follows lawsuits filed last week by the Securities and Exchange Commission (SEC) against cryptocurrency exchanges Binance and Coinbase. In complaints, the regulator named more than 20 digital assets as securities, including SOL, MATIC and ADA. The total number of cryptocurrencies that the US regulator considers “securities” has now reached approximately 68.
Mark D’Annunzio, Bakkt’s general counsel and secretary, told Fortune that the company is making changes “until there is clarity on how to offer a broader coin list appropriately.”
SEC enforcement action has contributed to 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 just days after rival Robinhood ended support for SOL, MATIC, and ADA.
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Among the main impacts on the cryptocurrency space, delisting altcoins reduces the liquidity of tokens that have already been hit by the market downturn. Together, MATIC, ADA, and SOL lost nearly $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 fallen from $13.31 billion to $9 billion, while MATIC’s market capitalization has decreased from 8. $37 billion to $5.32 billion.
Bakkt’s delisting follows its acquisition of cryptocurrency blockchain platform Apex in April for $55 million in cash and shares. Since the acquisition, Bakkt has also facilitated a review of token pair trading on the platform by dumping 25 of the 36 crypto tokens listed.