SEC Crackdown Forces Revolut to Remove SOL, ADA, and MATIC from US App – Investor Bites

SNEAK PEEK

• Revolut ceases Solana, Cardano, and Polygon for US users.
• SEC’s classification prompts Bakkt Holdings to delist cryptos.
• Crypto resilience shows despite regulatory hurdles.

In a startling development, Revolut, the popular UK-based fintech platform, has announced its decision to halt the offering of Solana, Cardano, and Polygon’s tokens to its US clientele. The move comes as a response to regulatory constraints imposed by the US Securities and Exchange Commission (SEC) that categorized the aforementioned tokens as unregistered securities.

The SEC’s classification in June led to legal encounters against prominent crypto exchanges, Coinbase Global Inc. and Binance Holdings. Owing to its crypto provider, Bakkt Holdings Inc., choosing to delist these cryptocurrencies, Revolut had to conform.

American customers have been granted a grace period until September 18 to exit their holdings in these tokens. Revolut will automatically liquidate any remaining tokens at the prevailing market rate after this deadline, converting them into dollar deposits. It is worth noting that this decision is exclusive to the US market, with no current plans to replicate it elsewhere, according to a company spokesperson.

Revolut isn’t alone in facing this predicament. Other major platforms, including Robinhood Markets Inc. and Israel’s eToro, have followed suit, restricting US users from opening new positions in a series of crypto tokens.

Despite these setbacks, the cryptos remain resilient. As of today, Cardano sits at $0.2966, Solana at $19.20, and Polygon at $0.7077, with their CoinMarketCap rankings at #7, #10, and #12, respectively. While significant, this regulatory hurdle does not signal the end of these cryptocurrencies but illuminates the evolving relationship between the crypto space and regulatory bodies.