coinspress.com
On Monday, eToro, a financial trading platform, announced that starting next month, its U.S. customers will no longer be able to purchase Algorand (ALGO), Decentraland (MANA), Dash (DASH), and Polygon (MATIC).
This decision comes in response to regulatory actions taken by the Securities and Exchange Commission (SEC), which have significantly impacted the financial services industry.
Among the 24 tokens listed on eToro’s U.S.-facing crypto platform, the SEC classified these tokens as securities following high-profile lawsuits against major crypto exchanges Coinbase and Binance.
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
The changes will be implemented on July 12, giving U.S. customers a one-month window to trade the affected tokens. While the spokesperson did not explicitly mention the SEC lawsuits, they did acknowledge the evolving regulatory landscape and recent developments that necessitated adjustments to eToro’s crypto offerings for U.S. customers.
It is important to note that these changes only impact U.S. customers of eToro, as the platform operates in over 100 markets globally. eToro emphasized its ongoing commitment to cryptocurrency on Twitter.
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eToro’s decision, effective June 27, to discontinue support for these tokens have been attributed to the prevailing uncertainty surrounding their regulatory status.
eToro and Robinhood share similarities in their progression from offering traditional assets such as stocks to expanding into cryptocurrencies. Both platforms began providing U.S. customers access to assets like Bitcoin and Ethereum in 2018.
While the SEC has displayed a regulatory stance against crypto companies that allegedly failed to comply with regulations, eToro and Robinhood are examples of firms originating from different industries experiencing the impact of the cryptocurrency market’s regulatory environment.