The SEC’s ongoing vendetta against cryptocurrencies has led to eToro announcing it will cease offering nearly all cryptocurrencies to its U.S. customers.
This move is part of a settlement with the U.S. Securities and Exchange Commission, which also includes a $1.5 million penalty for operating as an unregistered broker and clearing agency in relation to its crypto offerings.
The SEC alleged that eToro allowed U.S. customers to trade crypto assets deemed to be securities since at least 2020, without complying with federal registration requirements. While eToro neither admitted nor denied the SEC’s findings, the settlement specifically impacts its U.S. operations.
eToro’s co-founder and CEO Yoni Assia said the settlement enables the company to focus on providing innovative products across its diversified U.S. business. He highlighted the importance of compliance and cooperation with global regulators.
From now on, U.S. customers of eToro will only be able to trade Bitcoin, Bitcoin Cash, and Ether. eToro will provide a 180-day window for customers to sell other tokens.
Gurbir Grewal, director of the SEC’s Division of Enforcement, stated that eToro’s decision to remove tokens classified as investment contracts aligns with the regulatory framework and enhances investor protection.
The SEC’s stance is that many cryptocurrencies are securities and thus subject to its registration rules, a position contested by numerous crypto platforms such as Coinbase, Binance, and Kraken.
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