Bitstamp Halts Multiple Altcoin Trades in Light of SEC Ruling

• Bitstamp halts several altcoins following a decision by the US SEC.
• The SEC has identified 68 digital assets as “securities.”
• Bitstamp users can still hold and withdraw the halted tokens.

In response to a recent decision by the US Securities and Exchange Commission (SEC), Bitstamp, a prominent cryptocurrency exchange, has halted several altcoins from August 29. Bitstamp communicated via a tweet earlier today that US-based traders will be unable to transact in a variety of altcoins, namely Axie Infinity , Chiliz , Decentraland , Polygon , NEAR Protocol , The Sandbox , and Solana .

The Securities and Exchange Commission (SEC) has identified 68 digital assets as “securities.” In the course of its legal proceedings against Binance, the SEC expanded this list by adding 10 more cryptocurrencies, namely Binance Coin (BNB), Binance USD (BUSD), Solana (SOL), Cardano (ADA), Polygon (MATIC), Cosmos (ATOM), The Sandbox (SAND), Decentraland (MANA), Axie Infinity (AXS), and COTI (COTI).

Bitstamp cited “recent developments” as the reason for the halt, further highlighting this point professionally, befitting the crypto industry.

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

Nonetheless, the platform has clarified that, despite the halt in trading operations for these seven tokens, users will still have the capability to hold them in their accounts and execute withdrawals at their discretion.

As per the latest data from CoinGecko at the time of this report, Bitstamp has recorded an estimated trading volume of approximately $173 million in the past 24 hours.

The altcoins have voiced their opposition to the SEC’s decision. In June, the Solana Foundation disagreed with the SEC’s classification of SOL as security via a tweet. They also conveyed their willingness to engage with policymakers in dialogues to create legal clarity in the digital asset space.