In the footsteps of Robinhood, which was the first to draw by removing tokens from its offer ADA,FLOOR And MATICeToro application will not have waited long to also end support for “disputed” tokens, labeled as securities by the US Securities and Exchange Commission (SEC). By July 12th, US users of the platform will no longer be able to purchase ALGO, MANA, DASH And MATICbut they will still be able to keep and sell them if they wish.
eToro restricts its US customers’ access to ALGO, MANA, DASH and MATIC
Justifies i a Twitter feed the limitation of its offer, the online broker blamed “the rapidly changing regulatory landscape” and “recent developments” without directly alluding to the SEC, which, it should be remembered, initiated legal proceedings against Binance and Binance last week. In particular, Coinbase accused them of engaging in the illegal sale of securities. A warning shot that shook the crypto industry, causing the prices of the 19 tokens mentioned in the filings to drop.
Above all, if the issuers of the targeted tokens are not, at least for the moment, directly affected by the SEC’s attack, on the other hand, the platforms that offer them find themselves in a more than unpleasant situation, potentially exposing themselves for heavy penalties including financial for failure to comply with federal securities laws.
In light of this news, certain players are therefore ahead of the axe. Finally, those for whom cryptos are not the backbone of their business, but added over time to their stock offering. In fact, they show more frenzy than the dedicated platforms, which are more seasoned in the face of regulatory offensives.
Nevertheless, eToro continues to show interest in this asset class.
We remain supporters of crypto-assets and believe in the importance of giving our users access to a wide range of asset classes, which include stocks, ETFs and options. We are committed to working closely with regulators around the world to shape the future of the crypto industry and champion access for the mainstream investor
eToro on Twitter
Note that this is not the first time that the mobile application has adapted its crypto offering to the edicts of the regulatory authorities. ADA (Cardano) and SOL (Solana) had already suspended access for US users. XRP (Ripple) also in December 2020, after its lawsuit with the SEC, which should know the result soon.
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