The Impact of SEC Regulations: eToro to Remove ALGO, MANA, MATIC, and DASH from its Trading Platform for US Customers
eToro, a prominent Israeli trading exchange, has recently announced that it will no longer offer algorand (ALGO), decentraland (MANA), polygon (MATIC), and dash (DASH) to its customers in the United States. This decision comes as a response to the Securities and Exchange Commission’s (SEC) regulations regarding the classification of certain cryptocurrencies as securities. The delisting of these cryptocurrencies will impact eToro’s US customers, who have until July 12th to execute new positions in these altcoins. However, they will still be able to hold and sell existing positions in these cryptocurrencies after the given deadline.
Altcoin Supply Shrinks on eToro
eToro, a widely used trading platform that operates in numerous countries around the world, provides its users with the opportunity to trade stocks, indices, commodities, currencies, and cryptocurrencies. Previously, US customers had access to 24 different cryptocurrencies on eToro, including major players like bitcoin (BTC) and ethereum (ETH). However, this will now be reduced due to the SEC’s classification of certain cryptocurrencies as securities, which necessitates a license to offer them. Thus, eToro has decided to remove ALGO, MANA, MATIC, and DASH from its offerings in the US market. By taking this cautious step, eToro aims to mitigate any potential risks associated with non-compliance with regulatory guidelines.
eToro customers based in the US have approximately one month remaining to engage in trading activities involving ALGO, MANA, MATIC, and DASH. Notably, unlike Robinhood’s approach, eToro allows its customers to continue holding and selling these cryptocurrencies even after the delisting becomes effective. While eToro did not explicitly mention the SEC in its series of tweets, it explained its decision as a response to recent developments and the need to align with the evolving regulatory landscape. eToro emphasizes its commitment to complying with regulations and working closely with regulators globally to shape the future of the crypto industry, enabling access for mainstream investors.
Robinhood and eToro
Robinhood and eToro share similarities as both traditional trading platforms that have expanded into the cryptocurrency space over time. Both platforms began offering assets such as bitcoin and ethereum to their US customers in 2018, granting them access to the world of cryptocurrencies. However, with the SEC’s increasing focus on regulatory oversight, both eToro and Robinhood have had to adapt and adhere to these evolving guidelines to ensure compliance.
Despite the removal of ALGO, MANA, MATIC, and DASH from eToro’s offerings for US customers, the platform remains committed to supporting cryptocurrency assets. It aims to participate in shaping the future of the crypto industry by working collaboratively with regulators across the globe. By doing so, eToro ensures that crypto assets become more accessible to mainstream investors, while maintaining a proponent stance towards the extensive adoption of cryptocurrencies.
eToro’s decision to remove ALGO, MANA, MATIC, and DASH from its trading platform for US customers reflects the company’s adherence to SEC regulations and its dedication to operating within the evolving regulatory landscape. While this may limit the options available to eToro users in the US, it also demonstrates the platform’s commitment to providing compliant and secure trading experiences. As both eToro and Robinhood navigate the regulatory complexities, their actions reflect the need for industry participants to embrace regulatory standards and work collaboratively towards the mainstream adoption of cryptocurrencies.