Financial trading platform eToro has issued new guidelines prohibiting US customers from purchasing four crypto assets that were recently considered securities by the US 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 to its crypto offering, it did emphasize the “rapidly changing regulatory landscape.” In doing so, eToro joins the likes of Robinhood as the industry faces the hammer of the SEC.
eToro latest update
According to the new update, eToro said its US customers will no longer be able to buy Algorand (ALGO), Decentraland (MANA), Dash (DASH) and Polygon (MATIC) from July 12. Clients 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 providing our users with access to a diverse range of asset classes, which includes stocks, ETFs and options.”
Earlier this year, eToro partnered with Twitter to give users of the social media giant access to stocks, cryptocurrencies and other financial assets. However, the recent crackdown on the asset class has forced it to assess the country’s regulatory environment.
In a statement, the brokerage firm reiterated its commitment to working closely with global regulators to “shape the future of the crypto industry and champion access for the everyday investor.”
This is not the first time that eToro has restricted its US clients’ access to certain assets. After the SEC lawsuit against blockchain company Ripple in December 2020, eToro delisted XRP. A few months later, the company also delisted Cardano (ADA) and Tron (TRX) due to “business considerations in the evolving regulatory environment”.
The development comes days after another prominent trading company – Robinhood – announced plans to end support for Solana (SOL), Cardano (ADA) and Polygon (MATIC).
Robinhood Chief Legal Officer Dan Gallagher recently testified before the House Agriculture Committee that the company attempted to register with the SEC as a special purpose broker for digital assets, but failed. been closed by the agency without a proper explanation, even after going through a 16-month process. for the same.
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