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eToro Takes a Step Back
eToro, the prominent retail trading platform, has chosen to suspend the purchasing of Algorand, Decentraland, Polygon, and Dash for its US-based customers. This action comes on the heels of these tokens being deemed securities by recent SEC lawsuits.
Aligning with Regulatory Compliance
This adjustment was implemented only a few days post its competitor Robinhood’s identical response towards MATIC, Cardano, and Solana—cryptocurrencies similarly recognized as securities by the United States Securities and Exchange Commission.
eToro US, on a Twitter thread dated June 12, divulged that its crypto listings had been reassessed "considering the swiftly transforming regulatory environment" and "recent developments" in connection with the SEC.
From 6:00 am Eastern Time on July 12, these assets were formally delisted. However, US-based users of eToro will still possess the capacity to hold and sell these assets.
eToro’s Continued Support for Crypto Assets
The firm proclaimed, “We persist as a backer of crypto assets and venerate the significance of offering our users access to a diversified selection of asset classes, encompassing stocks, ETFs, and options. We are committed to collaboratively working with regulators globally to contour the future of the crypto industry and advocate access for the typical investor."
Navigating the Regulatory Landscape
Essentially, eToro has chosen to tread carefully, especially considering that the SEC has now declared in lawsuits against Binance and Coinbase that notable assets like ADA, SOL, MATIC, MANA, ALGO, among others, qualify as securities.
Certain community members have questioned eToro US’s silence regarding SOL, another cryptocurrency recently identified as a security. However, an eToro spokesperson has confirmed that SOL is not part of eToro US's offerings.
This isn't the first occasion when eToro US has restricted access to specific assets in reaction to SEC's legal inclinations. Back in December 2020, eToro also delisted Ripple in response to the SEC's lawsuit against Ripple Labs.
