SEC Jolts eToro Into Ditching Coins: What It Means For ALGO, MANA, DASH And MATIC

Author: Murtuza Merchant | June 13, 2023 12:37pm

Social investing platform eToro will delist a selection of cryptocurrency tokens for its U.S. customers.

What Happened: The company will no longer allow U.S. customers to open new positions in Algorand (CRYPTO: ALGO), Decentraland (CRYPTO: MANA), Dash (CRYPTO: DASH), and Polygon (CRYPTO: MATIC).

The decision comes in the wake of recent legal action by the U.S. Securities and Exchange Commission (SEC) and illustrates the escalating scrutiny faced by U.S. cryptocurrency exchanges.

However, customers who already hold positions in these tokens will still be able to sell them.

Due to recent developments across "the rapidly evolving regulatory landscape," eToro confirmed to Benzinga that it will be "making some changes" to its crypto offering starting at 6:00 a.m. ET on Wednesday, July 12.

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EToro stated that it remains supportive of crypto assets and acknowledges the importance of offering its users access to a diversified range of asset classes, including stocks, ETFs, and options.

The firm also emphasized its commitment to collaborating with regulators globally to shape the future of the cryptocurrency industry and champion access for ordinary investors.

Why It Matters: EToro’s decision to delist certain tokens should be viewed in the context of the broader regulatory clampdown in the U.S.

The SEC has been actively pursuing legal action against major cryptocurrency exchanges, including Binance (CRYPTO: BNB) for possible violations of securities laws, as well as Coinbase (NASDAQ:COIN) which has been forced to make adjustments to comply with regulations.

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Posted In: $ALGO $BNB $DASH $MANA $MATIC COIN