By Michael Scott
Cryptocurrency exchange Bitstamp revealed in its recent announcement a move to suspend access to several altcoins to US-based users permanently. The termination is set to take effect starting August 29. The suspension lists Polygon and Solana among several altcoins labeled securities by the US Securities and Exchange Commission (SEC) as unregistered securities.
Solana and Matic Tops List of Altcoins Suspended by Bitstamp
Bitstamp announcement is set to affect several crypto assets, including Axie Infinity, Chiliz (CHZ), The Sandbox (SAND), and Solana (SOL). Also, the crypto exchange included NEAR Protocol (NEAR), Axie Infinity (AXS), and Decentraland (MANA).
Founded in 2013, Bitstamp is today’s oldest crypto exchange operating from its Luxembourg headquarters. The platform lists 76 tokens alongside 167 trading pairs. A review of the Bitstamp crypto exchange shows it facilitated a daily volume of $119.7 million through a 32% decrease in the past 24 hours. Further, CoinGecko data shows that BTC/USD registered the most activity of any trading pair, with a daily volume of $41.039 million.
Bitstamp was elusive in its pronouncement on the decision to prohibit access to the seven tokens. Nonetheless, the Luxembourg-headquartered crypto exchange signaled to infer its decision from SEC’s move to classify the seven coins as unregistered securities when filing complaints against Binance and Coinbase.
Bitstamp Comprehensive Framework Aligned to Dynamic Regulatory Environment
The Tuesday, August 8 announcement restated that Bitstamp leverages a comprehensive framework that prompts continuous evaluation of cryptos offered relative to the dynamic regulatory environment. The announcement added that the recent developments witnessed in the United States necessitated changes to the crypto offerings for customers residing in the country.
Bitstamp clarified that though the crypto exchange would suspend trading of the seven tokens, the users could hold them in the accounts and withdraw when they wish.
Bitstamp move is a direct response to the crackdown initiated by Garry Gensler-led SEC against the crypto exchanges. The securities watchdog had in June level charges against Binance.US, a subsidiary of the leading crypto exchange in the world. Besides, it charged the leading crypto trading platform Coinbase for alleged involvement with digital tokens qualified as unregistered securities.
SEC accuses Coinbase of operating an unregistered securities exchange platform that commingled brokerage and clearing services. Also, the securities regulator submitted that Coinbase prioritized its profit pursuit over interests.
SEC Crackdown on Coinbase Challenged in Court
Coinbase would later file a motion on June 28 seeking the dismissal of the SEC’s lawsuit. The submission echoed remarks by Coinbase chief executive Brian Armstrong indicating that SEC lacks statutory authority to exercise over the exchanges. Besides, it submitted that the SEC position lacks tenable powers under the US securities law purportedly violated by Coinbase.
Last week, the San Francisco-headquartered crypto exchange confirmed its federal filing seeking the dismissal of the SEC’s case. The filing was surprising given that Coinbase announced engaging SEC regarding transparent and fair rulemaking in July.
Also, the company supports Congressional action as the suitable path toward rulemaking. Coinbase executives led by the chief legal officer have criticized SEC’s regulatory enforcement as eroding US crypto talent. Instead, they support Congressional action to enable the US to build a sustainable crypto economy. Its accomplishment would avert the exit of crypto operators, talents, and innovations from the US.
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