Crypto exchange Bitstamp has announced significant changes to its crypto offerings for US customers. The platform will suspend trading of seven cryptocurrencies, including big players like AXS, MATIC, and SOL, starting Aug. 29, 2023.
The SEC classified all the cryptocurrencies mentioned by the exchange as securities.
Bitstamp Crypto Asset Suspension
The cryptocurrencies targeted for suspension have been previously classified as securities by the SEC or recently identified as ones in ongoing lawsuits. These designations are based on the agency’s application of the Howey Test, a legal framework used to determine whether a particular asset qualifies as a security.
The sale of unregistered securities typically breaches US law. Securities must be registered with the SEC before being offered to the general public.
The following digital assets will be suspended for US customers on Bitstamp:
- AXS (Axie Infinity Shard)
- CHZ (Chiliz)
- MANA (Decentraland)
- MATIC (Polygon)
- NEAR (Near Protocol)
- SAND (The Sandbox)
- SOL (Solana)
Please take a look at our guide on what the Howey Test is: What Is the Howey Test and How Does It Impact Crypto?
Continued Access to Assets Amid Regulatory Ambiguity
While the exchange will halt trading of these specific cryptocurrencies, Bitstamp emphasized that US customers could still hold these assets in their accounts. This essential means that they can withdraw them as needed.
Bitstamp will cancel any new orders involving these assets that come in after the deadline.
Bitstamp has requested that users execute any desired buy or sell orders involving the affected assets before Aug. 29. In June, the United States Securities and Exchange Commission (SEC) launched lawsuits against crypto giants Binance and Coinbase.
The agency notably specified 19 cryptocurrencies as securities in the legal action, which has resulted in more extensive scrutiny of various digital assets. Previously, in May, the regulator classified 46 cryptocurrencies as securities.
Therefore, exchanges adjusting to the SEC verdict is a significant development in the crypto industry, especially for US-based traders.
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