eToro Reacts to SEC Lawsuits by Removing ALGO, MANA, MATIC, and DASH for US Customers
In response to a “rapidly evolving regulatory landscape,” the popular brokerage eToro has announced that it will be cutting off US customers from trading four cryptocurrency tokens that have been newly classified as securities by the Securities and Exchange Commission (SEC). The move follows recent SEC lawsuits against major cryptocurrency exchanges Binance and Coinbase, where the four tokens were mentioned in various capacities.
The cryptocurrencies affected by eToro’s decision are Algorand (ALGO), Decentraland (MANA), Polygon (MATIC), and Dash (DASH). Starting from 6:00 AM ET on Wednesday, July 12th, 2023, US customers will no longer be able to open new positions in these tokens on the eToro platform. However, existing holders will still be able to sell their positions.
From 6:00AM ET on Wednesday July 12th, 2023, US customers will no longer be able to open new positions in Algorand (ALGO), Decentraland (MANA), Dash (DASH) and Polygon (MATIC). Customers can continue to hold and sell existing positions in these coins. (2/5)
— eToro US (@eToroUS) June 12, 2023
eToro emphasized its commitment to reviewing the crypto assets it offers in light of regulatory changes. The brokerage acknowledged the importance of providing access to a diversified range of asset classes for its users, which includes stocks, ETFs, and options. While discontinuing support for the four tokens in question, eToro assured its customers that it remains a supporter of crypto assets and intends to work closely with regulators worldwide to shape the future of the industry and champion access for ordinary investors.
It should be noted that these changes only apply to eToro’s US customers. The decision to remove support for Cardano (ADA) for US customers was made in December 2021 due to “business-related considerations.”
eToro’s move comes in the wake of Robinhood, another popular trading platform, removing ADA, MATIC, and Solana (SOL) from its platform. The SEC has deemed each of these tokens to meet the criteria for classification as a security. Binance.US also discontinued several trading pairs last week, including ATOM/BTC and MANA/BTC, likely as a result of regulatory pressures.
In contrast, Coinbase CEO Brian Armstrong recently stated that his company does not plan to delist any of the tokens named as securities by the SEC in its lawsuit. The tokens mentioned in the suit include SOL, ADA, MATIC, FIL, SAND, AXS, CHZ, FLOW, ICP, NEAR, VGX, DASH, and NEXO.
The actions taken by eToro and other platforms reflect the increasing scrutiny and regulation of the cryptocurrency industry by regulatory bodies such as the SEC. As regulators continue to navigate this evolving landscape, it remains to be seen how these developments will impact the availability and trading of various cryptocurrencies in the US market.
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