- Financial trading platform eToro is restricting US customers from purchasing four crypto assets: Algorand, Decentraland, Dash, and Polygon, which have been recently categorized as securities by the SEC.
- These new guidelines seem to be a response to the SEC’s ongoing actions against cryptocurrency exchanges, reflecting a rapidly evolving regulatory landscape.
The financial trading platform eToro, in response to the increasingly complex regulatory environment, recently updated its guidelines to prevent US customers from purchasing four crypto assets. These assets include Algorand (ALGO), Decentraland (MANA), Dash (DASH), and Polygon (MATIC), all of which have been labeled as securities by the United States Securities and Exchange Commission (SEC). While the firm did not explicitly attribute this decision to the SEC’s actions, the link between these developments seems undeniable.
This regulatory pivot arrives in the midst of the SEC’s broadened enforcement actions against crypto exchanges like Coinbase and Binance. As such, eToro’s latest move aligns it with other industry players like Robinhood, who have also had to adjust their offerings in the face of the SEC’s enforcement activity.
Starting July 12th, eToro’s US customers will be unable to buy the four affected cryptocurrencies. However, they will retain the ability to hold and sell existing positions in these coins. The company underlined its continuing support for cryptocurrencies and reiterated its commitment to offer customers a diverse range of asset classes, encompassing stocks, ETFs, and options.
Earlier in the year, eToro had collaborated with Twitter to provide the social media platform’s users access to a broad range of financial assets, including stocks and cryptocurrencies. However, the recent regulatory actions have forced eToro to reassess the viability of its offerings in the current regulatory landscape.
The company reaffirmed its commitment to working in tandem with global regulators. Its stated mission is to actively contribute to shaping the crypto industry’s future and advocate for ordinary investors’ accessibility.
This isn’t the first time eToro has had to limit US customers’ access to certain assets. Following the SEC’s lawsuit against blockchain company Ripple in December 2020, eToro delisted XRP. Subsequently, it also removed Cardano (ADA) and Tron (TRX) due to “business-related considerations in the evolving regulatory environment.”
This development follows a similar announcement from Robinhood, which plans to terminate support for Solana (SOL), Cardano (ADA), and Polygon (MATIC). Robinhood’s chief legal officer, Dan Gallagher, stated that the company’s attempt to register as a special-purpose broker for digital assets with the SEC was denied without explicit justification.