Bitstamp to End Trading of Solana, Polygon and 5 Other Altcoins for US Users

Cryptocurrency exchange Bitstamp has announced its decision to “permanently” suspend trading for several altcoins for its U.S.-based users, effective from August 29, 2023.

The assets that will be affected by the suspension include Axie Infinity (AXS), Chiliz (CHZ), Decentraland (MANA), Polygon (MATIC), NEAR Protocol (NEAR), The Sandbox (SAND), and Solana (SOL).

Established in 2011 and currently headquartered in Luxembourg, Bitstamp is the longest-standing crypto exchange. Over the past 24 hours, it's pushed roughly $175 million in volume, according to CoinGecko.

Bitstamp indicated that the decision was "necessary" due to the current regulatory uncertainty in the United States.

"We have taken this decision out of an abundance of caution, which we feel is necessary given continued uncertainty in the U.S. regulatory landscape," U.S. CEO and global CCO of Bitstamp Bobby Zagottta told Decrypt. "We are and have always been supportive of clear and complete regulation in the U.S. and around the globe and remain hopeful that there will be improved clarity in the regulatory environment in the U.S. in the coming months."

“At Bitstamp, we have a comprehensive framework in place to continuously evaluate the cryptocurrencies we provide, taking into account the dynamic regulatory environment,” the exchange said in its announcement Tuesday. “Considering recent developments, we are making some changes to our crypto offerings—specifically for our customers residing in the United States.”

The exchange has clarified that although trading activities for these seven tokens will be halted, users can still hold them in their accounts and withdraw them at any time.

SEC cracks down on crypto exchanges

Binance.US, the American subsidiary of the world's largest cryptocurrency exchange, and Coinbase, the largest crypto trading platform in the U.S., are facing legal challenges as the SEC alleges that multiple tokens available for trading on these platforms qualify as unregistered securities.

The SEC also alleges that Coinbase operated as an unregistered national securities exchange, broker, and clearing agency for years and “elevated its interest in increasing its profits over investors’ interests.”

Coinbase filed a motion to dismiss the SEC’s lawsuit on June 28, arguing that the agency does not have statutory authority over the exchange and that its position regarding its powers is “untenable as a matter of law.”

This was followed by a federal filing last week, in which the San Francisco-based company asked a judge to dismiss the SEC’s case

Last month, a Coinbase representative told Decrypt that the crypto exchange is engaged in discussions with the SEC and believes "that transparent and fair rulemaking and Congressional action […] represent the best path forward for American crypto users and the companies building the cryptoeconomy in the U.S.”