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eToro Imposes Restrictions on 4 Crypto Assets Labelled as Securities in SEC Lawsuit

AA News - Chayanika Deka 2023-06-14 04:45

Financial trading platform eToro issued new guidelines barring US customers from buying four crypto assets that were recently deemed securities by the United States Securities and Exchange Commission (SEC) in lawsuits against Coinbase and Binance.

While eToro did not explicitly cite the securities regulator’s action as the reason for the latest changes in its crypto offering, it did emphasize the “rapidly evolving regulatory landscape.” In doing so, eToro joins the likes of Robinhood as the industry faces the SEC’s enforcement hammer.

eToro’s Latest Update

According to the new update, eToro said its US customers will no longer be able to purchase Algorand (ALGO), Decentraland (MANA), Dash (DASH), and Polygon (MATIC) starting July 12th. Customers will still be able to retain the ability to “hold and sell existing positions in these coins.”

“We remain a supporter of crypto-assets and believe in the importance of offering our users access to a diversified range of asset classes, which includes stocks, ETFs, and options.”

Earlier this year, eToro partnered with Twitter to enable the users of the social media giant to access stocks, cryptocurrencies, and other financial assets. However, the recent crackdown on the asset class has forced it to evaluate the regulatory environment in the country.

In a statement, the brokerage firm reiterated its commitment to working closely with global regulators in a bid “to shape the future of the crypto industry and champion access for the ordinary investor.”

Heightened Scrutiny

This isn’t the first time eToro had restricted its US customers from certain assets. After the SEC’s lawsuit against blockchain firm Ripple in December 2020, eToro delisted XRP. A few months later, the company also delisted Cardano (ADA) and Tron (TRX) due to “business-related considerations in the evolving regulatory environment.”

The development comes days after another prominent trading firm – Robinhood – announced plans to end support for Solana (SOL), Cardano (ADA), and Polygon (MATIC).

Robinhood’s chief legal officer Dan Gallagher recently testified before the House Agriculture Committee that the firm tried to register with the SEC as a special-purpose broker for digital assets but was shut down by the agency without proper explanation even after going through a 16-month process for the same.

The post eToro Imposes Restrictions on 4 Crypto Assets Labelled as Securities in SEC Lawsuit appeared first on CryptoPotato.