Financial trading platform eToro said on Monday that US clients can no longer buy Algorand (ALGO), Decentraland (MANA), Dash (DASH), and Polygon (MATIC), starting next month — as the SEC’s regulatory double-click reverberates throughout. Time financial services industry.
Among the 24 tokens listed on the crypto platform eToro facing the US, the tokens to be dropped have been designated as securities by the US financial watchdog in market-stirring lawsuits against the largest cryptocurrency exchanges Coinbase and Binance.
An eToro spokesperson told Decrypt: “US clients 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 currencies”.
eToro said the changes would take effect on July 12, giving US clients a one-month window to continue trading the respective tokens. The spokesperson did not explicitly mention the SEC’s most recent lawsuits but did draw attention to recent regulatory disclosures.
“eToro has a framework that reviews the crypto assets we offer in light of the rapidly evolving regulatory landscape,” said an eToro spokesperson. “Due to recent developments, we will be making some changes to our crypto offering to US customers.”
Operating in more than 100 markets internationally, the Israeli company has ensured that only American customers will be affected. eToro reiterated its public commitment to crypto on Twitter.
We remain supportive of crypto assets and believe in the importance of giving our users access to a variety of asset classes, which include stocks, ETFs, and options. (3/5)
– eToro US (eToroUS) June 12, 2023
eToro’s announcement came on the heels of this, attributing the change, which took effect on June 27, to a “cloud of uncertainty” that has recently descended over the tokens.
eToro and Robinhood are similar in that they have expanded to include crypto offerings from other assets such as stocks over time. Each platform opened the door to assets like Bitcoin and Ethereum for US customers in 2018.
And while the SEC has shown a sense of regulatory grudge against crypto companies that allegedly failed to comply, Robinhood and eToro are two examples of companies with roots in other industries that were feeling feverish because of their proximity to the cryptocurrency markets.