The United States Securities and Exchange Commission (SEC) enforcement actions against crypto entities continue to disrupt the country’s digital asset market. Multiple reports suggest that Bitstamp has become the latest crypto exchange to buckle under the regulator’s aggressive scrutiny by agreeing to delist altcoins like MATIC, NEAR, and SOL from its trading platform.
Bitstamp Withdraws Support for SOL, MATIC, and NEAR
Bitstamp, a prominent cryptocurrency exchange, announced earlier in the week that due to the increased regulatory scrutiny and recent industry shifts, it would stop supporting trading services for certain crypto assets by August 29. Many analysts opined that Bitstamp’s decision resulted from pressure from the US securities regulator.
Bitstamp’s decision reflects the exchange’s commitment to complying with regulatory requirements while adapting to the changing industry landscape. The announcement represents a notification to the firm’s US customers to make them aware of the changes and take necessary actions before the due date.
Furthermore, Bitstamp has outlined its specific course of action, which will directly impact US crypto traders. The exchange has decided to limit trading access to certain crypto assets for its American users.
Some of those crypto assets include AXS, MANA, CHZ, NEAR, SAND, MATIC, and SOL. Analysts claim that increased regulatory scrutiny is the leading cause of Bitstamp’s decision to cease support for the listed crypto assets.
The SEC has taken action against major players in the cryptocurrency space, including Binance and Coinbase, over alleged breach of securities laws. Hence, it is no surprise that the regulator would take similar action against Bitstamp and other crypto exchanges.
The commission argues that all cryptos (except Bitcoin) are securities. But this classification has far-reaching implications for Bitstamp and the broader crypto ecosystem.
Meanwhile, Bitstamp has advised its US customers to complete trades involving the listed assets on its platform before the delisting date. This reminder is important as any transactions initiated on these assets after this deadline will be “permanently disabled.”
However, the exchange allay users’ fears by assuring them they can keep these assets in their Bitstamp accounts. Furthermore, users can withdraw these assets whenever they want, with no restrictions.
US SEC’s Lawsuits Against Crypto Firms
Bitstamp’s action is noteworthy, considering the ongoing court battle between the SEC and Ripple. The crypto exchange won’t want to be involved in another lengthy legal battle with the US regulator.
While the last court ruling favored Ripple Labs, resulting in increased investor confidence in altcoins, and a surge in their prices, the SEC has stated that it would appeal this court ruling. Hence, Bitstamp’s recent move suggests that the significance of the XRP ruling may not be as conclusive as the crypto community hoped.
Due to the SEC’s enforcement approach in regulating this emerging market, the United States has become complicated for cryptocurrency companies’ operations. The regulator has consistently claimed that it has the right to perform oversight functions over the crypto market because it classifies cryptocurrencies as securities.
However, its actions have significantly impacted US-based crypto exchanges, forcing them to reassess the crypto assets listed on their trading platforms. Hence, it is no surprise that many are considering moving their operations out of the country.
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