eToro Restricts US Customers from Trading ALGO,MANA, MATIC,DASH tokens Amidst SEC Lawsuits

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Key Takeaways

  • The firm is to provide a one-month window for US customers to continue trading the affected tokens.
  • Recently, Robinhood also ceased support for ADA, SOL, and MATIC

eToro, an Israel-based social-trading platform, has announced that it will restrict US customers from opening new positions in several cryptocurrency tokens starting from July 12.  As part of this development,eToro will be halting ALGO, MANA, MATIC, and DASH token purchases for US customers.

The decision comes in response to recent lawsuits filed by the US Securities and Exchange Commission (SEC) against prominent crypto exchanges Coinbase and Binance, in which the SEC labeled 19 tokens as unregistered securities, including Algorand, Decentraland, Dash, and Polygon.

Reportedly, eToro spokesperson did not explicitly mention the SEC lawsuits but acknowledged the evolving regulatory landscape and recent developments. They stated that eToro has a framework in place to review the crypto assets it offers, leading to changes in its crypto offering for US customers. The company will implement these changes on July 12, providing a one-month window for US customers to continue trading the affected tokens.

eToro’s decision aligns with Robinhood’s recent announcement that it would cease support for ADA, SOL, and MATIC, citing a “cloud of uncertainty” surrounding these tokens. The move reflects a cautious approach amid regulatory scrutiny.

In a Twitter thread on June 12, eToro US emphasized its review of crypto listings in response to the rapidly evolving regulatory landscape and recent SEC developments. While the tokens mentioned earlier were officially delisted on July 12, eToro US users will still have the ability to hold and sell these assets.

The company expressed continued support for crypto assets and its commitment to providing users with access to a diverse range of asset classes, including stocks, ETFs, and options.

“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. We are committed to working closely with regulators around the world to shape the future of the crypto industry and champion access for the ordinary investor,“ the firm stated.

The decision to delist certain assets reflects eToro’s cautious approach, considering the SEC’s assertion that tokens like ADA, SOL, MATIC, MANA, ALGO, and others are securities.

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Saniya Raahath
Saniya Raahath

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