In a recent development that has caused ripples across the cryptocurrency industry, Revolut, the UK-based fintech giant, has announced plans to delist Solana (SOL), Polygon (MATIC), and Cardano (ADA) from its U.S. platform. This decision follows a designation by the U.S. Securities and Exchange Commission (SEC) that classifies these tokens as securities.
The platform has set a deadline of September 18 for the delisting process, giving users who hold these tokens until then to sell. Post this date, Revolut will sell any remaining holdings at the market price of the day and credit the resulting proceeds to user accounts. Following this action, U.S. users will not have the ability to buy, sell, or hold these tokens through their Revolut accounts.
A spokesperson from Revolut, when speaking to Decrypt, attributed the decision to "changing laws and regulations around cryptocurrency" in the United States. They did not directly attribute the delisting to the SEC’s recent lawsuits against Binance or Coinbase, which were initiated at the start of June when the SEC listed these tokens among a dozen others it considered as securities.
The SEC's regulatory action has sent shockwaves through the market, with SOL, MATIC, and ADA prices yet to recover to their pre-lawsuit levels. Collectively, these three altcoins boast a market capitalization of over $24 billion, as per CoinGecko data.
The lawsuits are only now starting to unravel in court, but the initial effects appear to have prompted other platforms to delist these tokens to steer clear of potential regulatory issues.
In the days following the SEC's actions, Robinhood, another popular trading platform, announced that it would cease supporting Solana, Polygon, and Cardano by June 27. Shortly after, eToro, a financial trading platform, informed its U.S. customers that they would no longer be able to purchase Polygon and three other altcoins targeted by the agency. However, eToro did clarify that customers could still sell and retain these coins.
In explaining its move, Revolut pointed out that it avails access to tokens via its digital services provider, Bakkt. Interestingly, Bakkt had announced its decision to delist these same tokens on June 16, citing a lack of regulatory clarity as the reason.
While the final impact of these regulatory actions is yet to be seen, it is clear that the SEC's decisions are making waves in the digital asset space. Platforms like Revolut are having to adjust their strategies and offerings in order to continue operating within the bounds of the law.