Amidst a shifting regulatory landscape, digital banking service Revolut has announced its decision to discontinue support for Cardano’s ADA, Polygon’s MATIC, and Solana’s SOL tokens on its US platform.
Revolut, the digital banking service, has announced the removal of Cardano’s ADA, Polygon’s MATIC, and Solana’s SOL tokens from its U.S. platform due to regulatory changes around cryptocurrency in the United States.
The move comes following the decision of Revolut’s U.S. crypto services provider, Bakkt, to delist these tokens as well.
Revolut communicated to customers that it would no longer be able to facilitate buy and sell orders for these tokens in response to this regulatory shift. The changes took effect immediately and will conclude with the complete cessation of custodial support for these tokens by Sept. 18.
However, Revolut clarified that the tokens would remain listed in other markets, where they are still available. Bakkt justified its delisting decision as a proactive measure until there is further clarity on how to offer a broader array of coins in a compliant manner.
The same tokens also saw their support discontinued by Robinhood, following the U.S. Securities and Exchange Commission’s (SEC) lawsuits against Binance and Coinbase. Robinhood’s decision was driven by the regulatory uncertainty enveloping these tokens, and their support was officially terminated on June 27.
The SEC argues that ADA, MATIC, and SOL, are part of a cluster of tokens that fit the definition of securities. The agency points to the marketed burning of SOL, indicating it may have led investors to anticipate profit from their investment. Similar concerns were raised about Polygon’s marketing strategy, suggesting the supply would reduce over time.
Additionally, eToro also removed support for MATIC, along with Dash, Algorand, and Decentraland – three more tokens identified by the SEC in its lawsuits. The discontinuation of support for these tokens will be in effect from July 12.
The company expressed its commitment to work collaboratively with global regulators to shape the future of the crypto industry in a recent tweet.
Coinbase offered a comprehensive response to the SEC’s claims, asserting that the SEC cannot unilaterally assert control as it tries to regulate digital assets. The company suggested that it is the role of Congress to make regulatory decisions concerning the industry.