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Bitstamp halts trading of Polygon, Solana as regulatory pressure mounts
SEC’s regulatory crackdown thrusts Polygon and Solana into the spotlight as U.S. traders feel the impact.
- Bitstamp will halt MATIC and SOL trading.
- The trading volume of both tokens remains normal as the price dips by less than 1%.
Polygon [MATIC] and Solana [SOL] have come under the scrutiny of the Security and Exchange Commission after the regulatory authority initiated legal actions against Binance and Coinbase. The SEC has classified these tokens as securities, prompting a response from an exchange.
Realistic or not, here’s MATIC market cap in BTC’s terms
Polygon and Solana trades to be halted
Bitstamp, a cryptocurrency exchange, has recently decided to suspend trading for Polygon and Solana tokens. This suspension is set to take effect starting from 29 August.
The rationale behind this action stemmed from a recent announcement by the SEC, where they declared MATIC, SOL, and an additional 66 cryptocurrencies to be classified as securities. These 68 cryptocurrencies, including MATIC and SOL, have become subjects of the SEC’s legal actions following years of investigations and proceedings.
The SEC has articulated its perspective on which cryptocurrencies it considers as securities. Polygon and Solana were notably highlighted in the SEC’s lawsuits against Binance and Coinbase as tokens that the regulatory body firmly asserted to be securities.
Polygon and Solana’s trading halts limited to U.S. users
The noteworthy aspect of Bitstamp’s recent announcement regarding the trading halt of Polygon and Solana was that it exclusively applied to users within the United States. Users residing in countries with dissimilar regulations could continue trading these tokens without restrictions.
However, the consequence of the SEC’s action was that the trading volume contributed by U.S. users of these tokens are expected to decrease. This potential reduction in US trading activity could influence MATIC and SOL’s price trajectory and other essential indicators.
Nevertheless, the impact of this recent development has yet to be reflected on market sentiment. According to Coinglass’s funding rate, traders maintained a bullish stance on the prospective price appreciation of MATIC and SOL. As of this writing, the funding rate for these assets remained positive across various exchanges.
Analyzing the reactions of MATIC and SOL
As of this writing, the daily timeframe chart indicated that MATIC was trading with a minor loss. Its current trading price hovered around $0.68, reflecting a decrease of less than 1%.
Notably, over the past few days, the token has exhibited limited noteworthy movements in both upward and downward directions. Also, the volume indicator demonstrated a lack of substantial activity.
As of this writing, the observed volume levels depicted standard trading activities, surpassing the 1 million mark. There was also a greater inclination towards selling pressure compared to buying pressure.
Source: TradingView
Additionally, a bullish trend was observed on Solana’s daily timeframe chart. While it was trading at approximately $24.3, there was a minor loss of less than 1%. Like Polygon, the volume situation was characterized by normal activity levels without evident spikes or declines.
Source: TradingView
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Considering these metrics, the immediate response to the recent regulatory development appeared to be relatively muted.
However, the forthcoming weeks and months may bring about shifts in reaction as more exchanges enact trade halts for U.S. users, in the case of Polygon and Solana.
