Many crypto investors are working hard to get rid of their altcoins out of fear that several of them are going to get delisted thanks to ongoing action from the Securities and Exchange Commission (SEC).
SEC Action is Making Traders Wary
The financial agency has been working hard to practically eliminate crypto altogether from the American monetary spectrum. There have already been multiple lawsuits filed against some of the nation’s leading digital currency companies including Binance, Coinbase, and Kraken, and there are many traders out there that are worried about what could arrive in the coming weeks and months as the SEC potentially ramps up its efforts.
There are also many companies out there that don’t want to be tangled up with crypto assets that could allegedly be considered securities in the coming future. For example, trading application Robinhood announced that it will no longer be selling Cardano, Solana, and Matic. In a statement, the company said:
We regularly review the crypto we offer on Robinhood.
Leading exchange e-Toro also said that it’s going to end future support for Matic, Algorand, and Decentraland. All three of these tokens have market caps that come to a combined total of $24 billion, so one can assume the delisting activity is not going to produce solid results for the space. On Twitter, the company explained:
We are committed to working closely with regulators around the world to shape the future of the crypto industry and champion access for the ordinary investor.
Yuya Hasegawa – bitcoin and crypto market analyst at Bit Bank in Tokyo – said:
The SEC’s legal battle against Binance and Coinbase has created a ripple effect where other U.S. virtual asset service providers began to halt certain services and delist some trading pairs out of concern for [the] SEC’s legal actions. Particularly, Robinhood’s decision on Friday to delist Cardano, Polygon, and Solana had a noticeable impact on the prices of those tokens and some other altcoins. Bitcoin was [also] affected, but its decline was limited compared to others, and the price has been supported by its February high. Bitcoin has been holding it together relatively well while the majority of altcoins suffered huge losses last week, but it is in for a potentially quite precarious week as more bad news could come up anytime regarding [the] SEC’s legal action, and the wider financial markets brace for [the looming Fed interest rate decision].
Gary Gensler’s Thoughts (Originally) on Crypto
As discussed earlier today, the SEC has not always been after crypto like it is now. Gary Gensler – the present head of the SEC – has commented in the past that assets like BTC, ETH, and LTC don’t fall into the securities category.
In fact, he was convinced that roughly three quarters of the crypto assets out there don’t classify as securities.
