Cardano's (ADA) price fell by 9% after the eToro trading platform announced plans of delisting the coin in the future due to US regulatory concerns. Know more.
The price of Cardano token (ADA) fell to its lowest price in over 3-months on Wednesday. This sharp drop in ADA price took place after eToro (a leading retail trading platform) announced plans of delisting ADA tokens in the USA. The Israel-based eToro trading platform reportedly took this decision due to regulatory concerns. They have also planned to delist the Tron token in addition to ADA.
As per the CoinMarketCap website, on November 24, 2021 (Wednesday) at 2 pm ET, the Cardano price dropped by over -9% to a low of US$1.60. Since reaching its all-time high (ATH) price at US$3.10 on September 02, 2021, ADA price has dropped by around -49%.
eToro has said in its announcement that they brought these changes because of "business-related considerations in the evolving regulatory environment." They went on to assure users that those already owning the token can sell the tokens they are holding.
Charles Hoskinson, the founder of Cardano, blamed eToro’s decision on the lack of a "global regulatory standard" regarding the listing of cryptocurrencies on exchanges. He also tried to assuage concerns about the sharp price drop of ADA by saying that it happened because of three factors: "fear, uncertainty, and disinformation."
Other tokens that fell sharply along with Cardano (ADA) are:
Despite this recent sharp drop in price, the ADA price increased by almost +850% in 2021 YTD (year-to-date). This altcoin’s market value has corrected from its peak of US$95 billion in early September 2021 to US$55 billion now.
Hoskinson also said:
"This is just the nature of the game… and the only way we're going to solve this as an industry is through regulatory clarity… If you're a European entity with principal European customers, you usually limit your U.S. exposure because the cost of U.S. exposure is extremely high."
A team of US regulatory agencies including the Board of Governors of the Federal Reserve (Fed), the Office of the Comptroller of the Currency (OCC), and the Federal Deposit Insurance Corporation (FDIC) said in a joint statement on November 23, 2021, that they would clarify next year (2022) the way in which banking institutions can engage with Bitcoin and other cryptocurrencies.
They also acknowledged the potential opportunities Bitcoin (BTC) and other cryptocurrencies can provide to all the stakeholders, including banks, the financial system, and the customers. In the joint statement, they also made it clear that their main aim is to provide clarity so that "customer protection" as well as "compliance with applicable laws and regulations" can be promoted.
The statement says:
To that end, the agencies recently conducted a series of interagency ‘policy sprints’ focused on crypto-assets. Similar to a "tech sprint" model, agency staff with various backgrounds and relevant subject matter expertise conducted preliminary analysis on various issues regarding crypto-assets.
All three US regulators (Fed, FDIC, and OCC) have analyzed the Bitcoin activities that the banks might be interested in engaging in. Some of these BTC activities include:
Fed, FDIC, and OCC have planned to share detailed guidance jointly in 2022 with those banks that are interested in offering the cryptocurrency services analyzed. The FDIC chairman, Jelena McWilliams, had hinted at such a development in October 2021. Last month, she said that a team of regulators was working to formulate a set of rules for those banks that want to engage with BTC and other cryptocurrencies.
"I think that we need to allow banks into this space while appropriately managing and mitigating risk."
Reports say that the 3 US regulatory agencies started working on crypto regulation back in May 2021.